COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL AND THE COURT OF AUDITORS ANNUAL ACCOUNTS OF THE EUROPEAN COMMISSION 2016
Date: 2017-06-26
Institutions: Directorate-General for Budget, European Commission
Subjects: European Commission, balance sheet, budgetary control, consolidated account, financial year, general budget (EU)

EN 

   EN 

   EUROPEAN COMMISSION  Brussels, 26.6.2017  COM(2017) 362 final   COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL AND THE COURT OF AUDITORS ANNUAL ACCOUNTS OF THE EUROPEAN COMMISSION 2016  
 
 
 
 
 
 
 
 
 Annual accounts of the European Commission 2016 

CONTENTS 

CERTIFICATION OF THE ACCOUNTS .................................................................... 4 

FINANCIAL STATEMENTS AND EXPLANATORY NOTES ............................................ 5 

BALANCE SHEET ....................................................................................................... 7 

STATEMENT OF FINANCIAL PERFORMANCE ................................................................... 8 

CASHFLOW STATEMENT ............................................................................................. 9 

STATEMENT OF CHANGES IN NET ASSETS ................................................................. 10 

NOTES TO THE FINANCIAL STATEMENTS .................................................................... 11 

BUDGETARY IMPLEMENTATION REPORTS ........................................................... 53 

3 

 
  
 
 Annual accounts of the European Commission 2016 

CERTIFICATION OF THE ACCOUNTS 

The annual accounts of  the European  Commission for  the year 2016 have  been  prepared in  accordance 
with the Financial Regulation applicable to the general budget of the European Union and the accounting 
rules adopted by myself in my capacity as the Commission's Accounting Officer, as are to be applied by 
all the institutions and Union bodies. 

I  acknowledge  my  responsibility  for  the  preparation  and  presentation  of  the  annual  accounts  of  the 
European Commission in accordance with Article 68 of the Financial Regulation. 

I have obtained from the authorising officers, who certified its reliability, all the information necessary for 
the  production  of  the  accounts  that  show  the  European  Commission's  assets  and  liabilities  and  the 
budgetary implementation. 

I hereby certify that based on this information, and on such checks as I deemed necessary to sign off the 
accounts,  I  have  a  reasonable  assurance  that  the  accounts  present  fairly,  in  all  material  aspects,  the 
financial position, the results of the operations and the cash flow of the European Commission. 

[signed] 

Rosa ALDEA BUSQUETS 

Accounting Officer of the Commission 

23 June 2017 

4 

 
 
 
 
 
 Annual accounts of the European Commission 2016 

EUROPEAN COMMISSION 
FINANCIAL YEAR 2016 

FINANCIAL STATEMENTS AND 
EXPLANATORY NOTES 

It should be noted that due to the rounding of figures into millions of euros, some financial data in the 
tables below may appear not to add-up.

5 

 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 Annual accounts of the European Commission 2016 

CONTENTS 

BALANCE SHEET ............................................................................................... 7 

STATEMENT OF FINANCIAL PERFORMANCE .......................................................... 8 

CASHFLOW STATEMENT .................................................................................... 9 

STATEMENT OF CHANGES IN NET ASSETS ......................................................... 10 

NOTES TO THE FINANCIAL STATEMENTS ........................................................... 11 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

8. 

SIGNIFICANT ACCOUNTING POLICIES ............................................................... 12 

NOTES TO THE BALANCE SHEET ....................................................................... 25 

NOTES TO THE STATEMENT OF FINANCIAL PERFORMANCE .................................. 40 

CONTINGENT LIABILITIES AND ASSETS ............................................................ 44 

BUDGETARY AND LEGAL COMMITMENTS ........................................................... 45 

FINANCIAL INSTRUMENTS DISCLOSURES .......................................................... 47 

RELATED PARTIES .......................................................................................... 51 

EVENTS AFTER THE BALANCE SHEET DATE ........................................................ 52 

6 

 
 
 Annual accounts of the European Commission 2016 

BALANCE SHEET 

NON-CURRENT ASSETS 
Intangible assets 
Property, plant and equipment 
Investments accounted for using the equity method 
Financial assets 
Pre-financing 
Exchange receivables and non-exchange recoverables 

CURRENT ASSETS 
Financial assets 
Pre-financing 
Exchange receivables and non-exchange recoverables 
Inventories 
Cash and cash equivalents  

TOTAL ASSETS 

NON-CURRENT LIABILITIES 
Pension and other employee benefits 
Provisions 
Financial liabilities 

CURRENT LIABILITIES 
Provisions 
Financial liabilities 
Payables 
Accrued charges and deferred income 

TOTAL LIABILITIES 

NET ASSETS 

Reserves 
Amounts to be called from Member States* 
NET ASSETS 

Note 

31.12.2016 

31.12.2015 

 EUR millions 

2.1 
2.2 
2.3 
2.4 
2.5 
2.6 

2.4 
2.5 
2.6 
2.7 
2.8 

2.9 
2.10 
2.11 

2.10 
2.11 
2.12 
2.13 

2.14 
2.15 

 135 
6 832 
 528 
60 733 
21 777 
 729 

90 734 

3 295 
23 964 
10 607 
 75 
27 579 

65 521 
156 255 

(66 550) 
(1 786) 
(54 375) 

 128 
5 592 
 497 
55 341 
29 884 
 899 

92 341 

9 579 
15 360 
9 215 
 75 
20 660 

54 889 
147 230 

(63 208) 
(1 562) 
(50 897) 

(122 711) 

(115 666) 

 (626) 
(2 165) 
(40 240) 
(67 027) 

(110 059) 
(232 770) 

 (302) 
(7 898) 
(32 367) 
(67 962) 

(108 528) 
(224 194) 

(76 515) 

(76 964) 

3 031 
(79 546) 
(76 515) 

2 915 
(79 879) 
(76 964) 

*  The European Parliament adopted a budget on 1 December 2016 which provides for the payment of the Commission's short-term 
liabilities from own resources to be collected by, or called up from, the Member States in 2017. Additionally, under article 83 of the 
Staff  Regulations  (Council  Regulation  259/68  of  29  February  1968  as  amended),  the  Member  States  shall  jointly  guarantee  the 
liability for pensions. 

7 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Annual accounts of the European Commission 2016 

STATEMENT OF FINANCIAL PERFORMANCE 

Note 

2016 

EUR millions 

2015 

REVENUE 
Revenue from non-exchange transactions 
GNI resources 
Traditional own resources 
VAT 
Fines 
Recovery of expenses 
Other 

Revenue from exchange transactions 
Financial income 
Other 

Total Revenue 

EXPENSES 
Implemented by Member States 

European Agricultural Guarantee Fund 
European Agricultural Fund for Rural Development 
and other rural development instruments 
European Regional Development Fund &         
Cohesion Fund 
European Social Fund 
Other 

3.1 

3.2 
3.3 

3.4 
3.5 

3.6 

Implemented by the Commission, executive agencies 
and trust funds 
Implemented by other EU agencies and bodies 
Implemented by third countries and int. organisations 
Implemented by other entities 
Staff and pension costs 
Changes in employee benefits actuarial assumptions 
Finance costs 
Share of net result of joint ventures and associates 
Other 

3.7 

3.8 
3.8 
3.8 
3.9 

3.10 

3.11 

95 578 
20 439 
15 859 
3 858 
1 946 
1 695 
139 376 

1 746 
 647 
2 393 

95 355 
18 649 
18 328 
 531 
1 547 
1 223 
135 633 

1 787 
1 264 
3 051 

141 769 

138 684 

(44 152) 
(12 604) 

(45 032) 
(16 376) 

(35 045) 

(38 745) 

(9 366) 
(1 606) 
(15 644) 

(3 064) 
(3 259) 
(2 035) 
(6 911) 
 (992) 
(1 857) 
 2 
(3 462) 

(9 849) 
(2 380) 
(15 635) 

(1 616) 
(3 031) 
(2 107) 
(7 537) 
(2 008) 
(1 933) 
 (641) 
(4 655) 

Total Expenses 
ECONOMIC RESULT OF THE YEAR 

(139 994) 
1 775 

(151 546) 
(12 862) 

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 Annual accounts of the European Commission 2016 

CASHFLOW STATEMENT 

Note 

Economic result of the year 
Operating activities 
Amortisation 
Depreciation 
(Increase)/decrease in loans 
(Increase)/decrease in pre-financing 
(Increase)/decrease in exchange receivables and           
non-exchange recoverables 
(Increase)/decrease in inventories 
Increase/(decrease) in pension and employee benefits liability 
Increase/(decrease) in provisions 
Increase/(decrease) in financial liabilities 
Increase/(decrease) in payables 
Increase/(decrease) in accrued charges and deferred income 
Prior year budgetary surplus taken as non-cash revenue 
Other non-cash movements 
Investing activities 
(Increase)/decrease in intangible assets and property, plant 
and equipment  
(Increase)/decrease in investments accounted for using the 
equity method 
(Increase)/decrease in available for sale financial assets 
(Increase)/decrease in financial assets at fair value through 
surplus or deficit 
NET CASHFLOW 

Net increase/(decrease) in cash and cash equivalents 
Cash and cash equivalents at the beginning of the year 
Cash and cash equivalents at year-end 

2016 
1 775 

 26 
 314 
1 726 
 (497) 
(1 222) 

 0 
3 343 
 548 
(2 254) 
7 874 
 (935) 
(1 349) 
 23 

EUR millions 

2015 
(12 862) 

 20 
 221 
1 455 
7 287 
5 308 

 7 
5 163 
 (249) 
 (920) 
(10 619) 
12 386 
(1 435) 
 65 

(1 587) 

(1 054) 

 (31) 

 (835) 
 (0) 

6 920 

6 920 
20 660 
27 579 

 (87) 

 (214) 
– 

4 472 

4 472 
16 187 
20 660 

9 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
STATEMENT OF CHANGES IN NET ASSETS 

Annual accounts of the European Commission 2016 

BALANCE AS AT 31.12.2014 
Movement in Guarantee Fund reserve 
Fair value movements 
Other 
Allocation of the 2014 economic result 
2014 budget result credited to Member States 
Economic result of the year 
BALANCE AS AT 31.12.2015 
Movement in Guarantee Fund reserve 
Fair value movements 
Other 
Allocation of the 2015 economic result 
2015 budget result credited to Member States 
Economic result of the year 
BALANCE AS AT 31.12.2016 

Reserves (A) 

Amounts to be called from          

Member States (B) 

Fair value reserve  Other reserves 

 202 
- 
 84 
- 
- 
- 
- 
 286 
– 
 24 
– 
– 

2 438 
 189 
- 
 2 
- 
- 
- 
2 629 
 82 
– 
 9 
– 

Accumulated 
Surplus/(Deficit) 
(54 147) 
 (189) 
- 
 (20) 
(11 226) 
(1 435) 
- 
(67 016) 
 (82) 

 (11) 
(12 862) 
(1 349) 

 311 

2 720 

(81 321) 

Economic result 
of the year 

(11 226) 
- 
- 
- 
11 226 
- 
(12 862) 
(12 862) 

– 

12 862 

1 775 
1 775 

EUR millions 

Net Assets 
=(A)+(B) 

(62 734) 
– 
 84 
 (18) 
– 
(1 435) 
(12 862) 
(76 964) 
– 
 24 
 (2) 
– 
(1 349) 
1 775 
(76 515) 

10 

 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Annual accounts of the European Commission 2016 

NOTES TO THE FINANCIAL STATEMENTS 

For further information in addition to the notes below, please also see the 2016 EU consolidated annual 
accounts. 

11 

 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 Annual accounts of the European Commission 2016 

1. 

SIGNIFICANT ACCOUNTING POLICIES 

The European Commission (hereinafter referred to as the Commission) applies the accounting policies of 
the  European  Union  (hereinafter  referred  to  as  the  EU).  A  summary  of  the  significant  EU  accounting 
policies is given below. 

1.1.  LEGAL BASIS AND ACCOUNTING RULES 

The  accounts  of  the  EU  are  kept  in  accordance  with  Regulation  (EU,  Euratom)  No 966/2012  of  the 
European  Parliament  and  of  the  Council  of  25 October 2012  on  the  financial  rules  applicable  to  the 
general  budget  of  the  Union  and  repealing  Council  Regulation  (EC,  Euratom)  No 1605/2002  (OJ L 298, 
26 October 2012,  p. 1)  hereinafter  referred  to  as  the  'Financial  Regulation'  and  Commission  Delegated 
Regulation  (EU)  No  1268/2012  of  29 October 2012  (OJ L 362,  31 December 2012,  p. 1)  laying  down 
detailed rules of application of this Financial Regulation. 

In accordance with article 143 of the Financial Regulation, the EU prepares its financial statements on the 
basis  of  accrual-based  accounting  rules  that  are  based  on  International  Public  Sector  Accounting 
Standards (IPSAS). These accounting rules, adopted by the Accounting Officer of the Commission, have 
to  be  applied  by  all  the  institutions  and  EU  bodies  falling  within  the  scope  of  consolidation  in  order  to 
establish a uniform set of rules for accounting, valuation and presentation of the accounts with a view to 
harmonising the process for drawing up the financial statements and consolidation. 

1.2.  ACCOUNTING PRINCIPLES 

The objective of financial statements is to provide information about the financial position, performance 
and cashflows of an entity that is useful to a wide range of users. For the EU as a public sector entity, the 
objectives are more specifically to provide information useful for decision making, and to demonstrate the 
accountability  of  the  entity  for  the  resources  entrusted  to  it.  It  is  with  these  goals  in  mind  that  the 
present document has been drawn up.  

The  overall  considerations  (or  accounting  principles)  to  be  followed  when  preparing  the  financial 
statements  are  laid  down  in  EU  accounting  rule  1  "Financial  Statements"  and  are  the  same  as  those 
described  in  IPSAS  1:  fair  presentation,  accrual  basis,  going  concern,  consistency  of  presentation, 
materiality,  aggregation,  offsetting  and  comparative  information.  The  qualitative  characteristics  of 
financial  reporting  according  to  article  144  of  the  Financial  Regulation  are  relevance,  reliability, 
understandability and comparability. 

1.3.  CONSOLIDATION 

Scope of consolidation 

The  consolidated  financial  statements  of  the  EU  comprise  all  significant  controlled  entities  (i.e.  the  EU 
institutions  (including  the  Commission)  and  the  EU  agencies),  associates  and  joint  ventures.  The 
complete  list  of  consolidated  entities  can  be  found  in  note  9  of  the  EU  financial  statements.  It  now 
comprises  52  controlled  entities  and  1  associate.  Entities  that  fall  under  the  consolidation  scope,  but 
which are immaterial to the EU consolidated financial statements as a whole, need not be consolidated or 
accounted for using equity method where to do so would result in excessive time or cost to the EU. Those 
entities are referred to as 'Minor entities' and are separately listed in note 9 - scope of consolidation. In 
2016, 7 entities have been classified as minor entities. 

Controlled entities 

The decision to include an entity in the scope of consolidation is based on the control concept. Controlled 
entities are all entities for which the EU is exposed, or has right, to variable benefits from its involvement 
and has the liability to affect the nature and amount of those benefits through its power over the other 
entity. This power must be presently exercisable and must relate to the relevant activities of the entity. 
Controlled  entities  are  fully  consolidated.  The  consolidation  begins  at  the  first  date  on  which  control 
exists, and ends when such control no longer exists. 

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 Annual accounts of the European Commission 2016 

The most common indicators of control within the EU are: creation of the entity through founding treaties 
or secondary legislation, financing of the entity from the EU budget, the existence of voting rights in the 
governing bodies, audit by the European Court of Auditors and discharge by the European Parliament. An 
individual assessment for each entity is made in order to decide whether one or all of the criteria listed 
above are sufficient to result in control. 

Under  this  approach,  the  EU's  institutions  (except  the  European  Central  Bank)  and  agencies  (excluding 
the  agencies  of  the  former  2nd  pillar)  are  considered  as  under  the  exclusive  control  of  the  EU  and  are 
therefore  included  in  the  consolidation  scope.  Furthermore  the  European  Coal  and  Steel  Community 
(ECSC) in Liquidation is also considered as a controlled entity.  

All material "inter-entity transactions and balances" between EU controlled entities are eliminated, while 
unrealised gains and losses on such transactions are not material and so have not been eliminated. 

Joint Arrangements 

A joint arrangement is an agreement over which the EU and one or more parties have joint control. Joint 
control is contractually agreed sharing of control over an arrangement, which exists only when decisions 
about the relevant activities require the unanimous consent of parties sharing control. Joint agreements 
can  be  either  joint  operations  or  joint  ventures.  In  case  a  joint  arrangement  is  structured  through  a 
separate vehicle and parties to the joint arrangement have rights to the net assets of the arrangement, 
this  joint  arrangement  classifies  as  a  joint  venture.  Participations  in  joint  ventures  are  accounted  for 
using the equity method (see note 1.5.4). In case the parties have rights to the assets, and obligations 
for the liabilities, related to the arrangement, this joint arrangement is classified as a joint operation. In 
relation  to  its  interest  in  joint  operations,  the  EU  recognises  in  its  financial  statements:  its  assets  and 
liabilities,  revenue  and  expense,  as  well  as  its  share  of  assets,  liabilities,  revenue  and  expense  held  or 
incurred jointly. 

Associates 

Associates are entities over which the EU has, directly or indirectly, significant influence but not control. 
It is presumed that significant influence exists if the EU holds directly or indirectly 20 % or more of the 
voting rights. Participations in associates are accounted for using the equity method (see note 1.5.4). 

Non-consolidated entities the funds of which are managed by the Commission 

The  funds  of  the  Joint  Sickness  Insurance  Scheme  for  staff  of  the  EU,  the  European  Development  Fund 
and  the  Participants  Guarantee  Fund  are  managed  by  the  Commission  on  their  behalf.  However,  since 
these entities are not controlled by the EU, they are not consolidated in its financial statements. 

1.4.  BASIS OF PREPARATION 

Financial  statements  are  presented  annually.  The  accounting  year  begins  on  1  January  and  ends  on 
31 December. 

1.4.1.  Currency and basis for conversion 

Functional and reporting currency 

The  financial  statements  are  presented  in  millions  of  euros,  the  euro  being  the  EU's  functional  and 
reporting currency. 

Transactions and balances 

Foreign currency transactions are translated into euros using the exchange rates prevailing at the dates 
of the transactions. Foreign exchange gains and losses resulting from the settlement of foreign currency 
transactions  and  from  the  re-translation  at  year-end  exchange  rates  of  monetary  assets  and  liabilities 
denominated in foreign currencies are recognised in the statement of financial performance. Translation 
differences  on  non-monetary  financial  instruments  classified  as  available  for  sale  financial  assets  are 
included in the fair value reserve. 

13 

 
 Annual accounts of the European Commission 2016 

Different conversion methods apply to property, plant and equipment and intangible assets, which retain 
their value in euros at the rate that applied at the date when they were purchased. 

Year-end balances of monetary assets and liabilities denominated in foreign currencies are converted into 
euros on the basis of the European Central Bank (ECB) exchange rates applying on 31 December: 

Euro exchange rates 

Currency 
BGN 
CZK 
DKK 
GBP 
HRK 
HUF 

31.12.2016 
1.9558 
27.0210 
7.4344 
0.8562 
7.5597 
309.8300 

31.12.2015 
1.9558 
27.0230 
7.4626 
0.7340 
7.6380 
315.9800 

Currency 
PLN 
RON 
SEK 
CHF 
JPY 
USD 

31.12.2016 
4.4103 
4.5390 
9.5525 
1.0739 
123.4000 
1.0541 

31.12.2015 
4.2639 
4.5240 
9.1895 
1.0835 
131.0700 
1.0887 

1.4.2.  Use of estimates 

In  accordance  with  IPSAS  and  generally  accepted  accounting  principles,  the  financial  statements 
necessarily  include  amounts  based  on  estimates  and  assumptions  by  management  based  on  the  most 
reliable information available. Significant estimates include, but are not limited to: amounts for employee 
benefit  liabilities,  provisions,  financial  risk  on  inventories  and  accounts  receivable,  accrued  income  and 
charges,  contingent  assets  and  liabilities,  degree  of  impairment  of  intangible  assets  and  property,  plant 
and equipment and amounts disclosed in the notes concerning financial instruments. Actual results could 
differ  from  those  estimates.  Changes  in  estimates  are  reflected  in  the  period  in  which  they  become 
known. 

1.5.  BALANCE SHEET 

1.5.1. 

Intangible assets 

Acquired  computer  software  licences  are  stated  at  historical  cost  less  accumulated  amortisation  and 
impairment  losses.  The  assets  are  amortised  on  a  straight-line  basis  over  their  estimated  useful  lives 
(3-11 years). The estimated useful lives of intangible assets depend on their specific economic lifetime or 
legal  lifetime  determined  by  an  agreement.  Internally  developed  intangible  assets  are  capitalised  when 
the relevant criteria of the EU accounting rules are met and relate solely to the development phase of the 
asset.  The  costs  capitalisable  include  all  directly  attributable  costs  necessary  to  create,  produce,  and 
prepare the asset to be capable of operating in the manner intended by management. Costs associated 
with  research  activities,  non-capitalisable  development  costs  and  maintenance  costs  are  recognised  as 
expenses as incurred.   

1.5.2. 

Property, plant and equipment 

All  property,  plant  and  equipment  are  stated  at  historical  cost  less  accumulated  depreciation  and 
impairment losses. Cost includes expenditure that is directly attributable to the acquisition, construction 
or transfer of the asset. 

Subsequent  costs  are  included  in  the  asset’s  carrying  amount  or  recognised  as  a  separate  asset,  as 
appropriate,  only  when  it  is  probable  that  future  economic  benefits  or  service  potential  associated  with 
the  item  will  flow  to  the  EU  and  its  cost  can  be  measured  reliably.  Repairs  and  maintenance  costs  are 
charged to the statement of financial performance during the financial period in which they are incurred. 

14 

 
  
 
 
 
 Annual accounts of the European Commission 2016 

Land  and  works  of  art  are  not  depreciated  as  they  are  deemed  to  have  an  indefinite  useful  life.  Assets 
under  construction  are  not  depreciated  as  these  assets  are  not  yet  available  for  use.  Depreciation  on 
other  assets  is  calculated  using  the  straight-line  method  to  allocate  their  cost  less  their  residual  values 
over their estimated useful lives, as follows: 

Type of asset 
Buildings 
Space assets 
Plant and equipment 
Furniture and vehicles 
Computer hardware 
Other 

Straight line depreciation rate 

4 % to 10 % 
8 % to 20 % 
10 % to 25 % 
10 % to 25 % 
25 % to 33 % 
10 % to 33 % 

Gains  or  losses  on  disposals  are  determined  by  comparing  proceeds  less  selling  expenses  with  the 
carrying amount of the disposed asset and are included in the statement of financial performance. 

Leases 

Leases  of  tangible  assets,  where  the  EU  has  substantially  all  the  risks  and  rewards  of  ownership,  are 
classified as finance leases. Finance leases are capitalised at the inception of the lease’s commencement 
at the lower of the fair value of the leased asset and the present value of the minimum lease payments. 
The interest element of the finance lease payment is charged to expenditure over the period of the lease 
at  a  constant  periodic  rate  in  relation  to  the  balance  outstanding.  The  rental  obligations,  net  of  finance 
charges, are included in financial liabilities (non-current and current). The interest element of the finance 
cost  is  charged  to  the  statement  of  financial  performance  over  the  lease  period  so  as  to  produce  a 
constant periodic interest rate on the remaining balance of the liability for each period. The assets held 
under finance leases are depreciated over the shorter of the asset's useful life and the lease term. 

Leases where the lessor retains a significant portion of the risks and rewards inherent to ownership are 
classified as operating leases. Operating lease payments are recognised as an expense in the statement 
of financial performance on a straight-line basis over the lease term. 

1.5.3. 

Impairment of non-financial assets 

Assets  that  have  an  indefinite  useful  life  are  not  subject  to  amortisation/depreciation  and  are  tested 
annually  for  impairment.  Assets  that  are  subject  to  amortisation/depreciation  are  reviewed  for 
impairment whenever events or changes in circumstances indicate that the carrying amount may not be 
recoverable.  An  impairment  loss  is  recognised  for  the  amount  by  which  the  asset’s  carrying  amount 
exceeds  its  recoverable  (service)  amount.  The  recoverable  (service)  amount  is  the  higher  of  an  asset’s 
fair value less costs to sell and its value in use. 

Intangible  assets  and  property,  plant  and  equipment  residual  values  and  useful  lives  are  reviewed,  and 
adjusted if appropriate, at least once per year. An asset’s carrying amount is written down immediately 
to  its  recoverable  (service)  amount  if  the  asset’s  carrying  amount  is  greater  than  its  estimated 
recoverable  (service)  amount.  If  the  reasons  for  impairments  recognised  in  previous  years  no  longer 
apply, the impairment losses are reversed accordingly. 

1.5.4. 

Investments accounted for using the equity method 

Participations in associates and joint ventures 

Investments  accounted for using the equity method are initially recognised at cost. The EU's interest in 
these  investments  is  recognised  in  the  statement  of  financial  performance,  and  its  share  in  the 
movements in reserves is recognised in the fair value reserve in net assets. The initial cost together with 
all  movements  (further  contributions,  share  of  economic  results  and  reserve  movements,  impairments, 
and  dividends)  give  the  book  value  of  the  investment  in  the  financial  statements  at  the  balance  sheet 
date. Distributions received from the investment reduce the carrying amount of the asset. 

If the EU's share of deficits of an investment accounted for using the equity method equals or exceeds its 
interest  in  the  investment,  the  EU  discontinues  recognising  its  share  of  further  losses  ("unrecognised 
losses").  After  the  EU's  interest  is  reduced  to  zero,  additional  losses  are  provided  for  and  a  liability  is 

15 

 
 Annual accounts of the European Commission 2016 

recognised, only to the extent that the EU has incurred legal or constructive obligation or made payments 
on behalf of the entity. 

If  there  are  indications  of  impairment,  a  write-down  to  the lower  recoverable  amount  is necessary.  The 
recoverable  amount  is  determined  as  described  under  1.5.3.  If  the  reason  for  impairment  ceases  to 
apply  at  a  later  date,  the  impairment  loss  is  reversed  to  the  carrying  amount  that  would  have  been 
determined had no impairment loss been recognised. 

In  cases  where  the  EU  holds  20 %  or  more  of  an  investment  capital  fund,  it  does  not  seek  to  exert 
significant  influence.  Such  funds  are  therefore  treated  as  financial  instruments  and  categorised  as 
available for sale financial assets. 

Associates and joint ventures classified as minor entities are not accounted for under the equity method. 
EU contributions to those entities are accounted for as an expense of the period.  

1.5.5. 

Financial assets 

Classification 

The  EU  classifies  their  financial  assets  in  the  following  categories:  financial  assets  at  fair  value  through 
surplus  or  deficit;  loans  and  receivables;  held-to-maturity  investments;  and  available  for  sale  financial 
assets. The classification of financial instruments is determined at initial recognition and re-evaluated at 
each balance sheet date. 

(i)  Financial assets at fair value through surplus or deficit 

A financial asset is classified in this category if acquired principally for the purpose of selling in the short 
term  or  if  so  designated  by  the  EU.  Derivatives  are  also  categorised  in  this  category.  Assets  in  this 
category  are  classified  as  current  assets  if  they  are  expected  to  be  realised  within  12  months  of  the 
balance sheet date. 

(ii)  Loans and receivables 

Loans  and  receivables  are  non-derivative  financial  assets  with  fixed  or  determinable  payments  that  are 
not quoted in an active market. They arise when the EU provides money, goods or services directly to a 
debtor  with  no  intention  of  trading  the  receivable,  or  in  case  the  EU  is  subrogated  to  the  rights  of  the 
original lender following a payment made by the EU under a guarantee contract. Payments due within 12 
months  of  the  balance  sheet  date  are  classified  as  current  assets.  Payments  due  after  12  months  from 
the balance sheet date are classified as non-current assets. Loans and receivables include term deposits 
with the original maturity above three months. 

(iii) Held-to-maturity investments 

Held-to-maturity  investments  are  non-derivative  financial  assets  with  fixed  or  determinable  payments 
and  fixed  maturities  that  the  EU  has  the  positive  intention  and  ability  to  hold  to  maturity.  During  this 
financial year, the EU did not hold any investments in this category.  

(iv) Available for sale financial assets 

Available  for  sale  financial  assets  are  non-derivatives  that  are  either  designated  in  this  category  or  not 
classified  in  any  of  the  other  categories.  They  are  classified  as  either  current  or  non-current  assets, 
depending  on  the  period  of  time  the  EU  expects  to  hold  them,  which  is  usually  the  maturity  date. 
Investments in entities that are neither consolidated nor accounted for using the equity method and other 
equity-type  investments  (e.g.  Risk  Capital  Operations)  are  also  classified  as  available  for  sale  financial 
assets. 

Initial recognition and measurement 

Purchases  and  sales  of  financial  assets  at  fair  value  through  surplus  or  deficit,  held-to-maturity  and 
available for sale are recognised on trade-date –  the date on  which the EU commits to purchase or  sell 
the asset. Cash equivalents and loans are recognised when cash is advanced to the borrowers. Financial 
instruments are initially recognised at fair value. For all financial assets not carried at fair value through 
surplus  or  deficit  transactions  costs  are  added  to  the  fair  value  at  initial  recognition.  Financial  assets 

16 

 
 Annual accounts of the European Commission 2016 

carried at fair value through surplus or deficit are initially recognised at fair value and transaction costs 
are expensed in the statement of financial performance. 

The fair value of a financial asset on initial recognition is normally the transaction price (i.e. the fair value 
of the consideration received), unless the fair value of that instrument is evidenced by comparison with 
other observable current market transactions in the same instrument or based on a valuation technique 
whose  variables  include  only  data  from  observable  markets  (e.g.  in  case  of  some  derivative  contracts). 
However,  when  a  long-term  loan  that  carries  no  interest  or  an  interest  below  market  conditions  is 
granted, its fair value can be estimated as the present value of all future cash receipts discounted using 
the prevailing market rate of interest for a similar instrument with a similar credit rating. 

Loans  granted  are  measured  at  their  nominal  amount,  which  is  considered  to  be  the  fair  value  of  the 
loan. The reasoning for this is as follows: 

- 

- 

- 

The “market environment” for EU lending is very specific and different from the capital market used 
to issue commercial or government bonds. As lenders in these markets have the opportunity to 
choose alternative investments, the opportunity possibility is factored into market prices. However, 
this opportunity for alternative investments does not exist for the EU which is not allowed to invest 
money on the capital markets; it only borrows funds for the purpose of lending at the same rate. This 
means that there is no alternative lending or investment option available to the EU for the sums 
borrowed. Thus, there is no opportunity cost and therefore no basis of comparison with market rates. 
In fact, the EU lending operation itself represents the market. Essentially, since the opportunity cost 
"option" is not applicable, the market price does not fairly reflect the substance of the EU lending 
transactions. Therefore, it is not appropriate to determine the fair value of EU lending with reference 
to commercial or government bonds. 

Furthermore as there is no active market or similar transactions to compare with, the interest rate to 
be used by the EU for fair valuing its lending operations under the EFSM, BOP and other such loans, 
should be the interest rate charged. 

In addition, for these loans, there are compensating effects between loans and borrowings due to 
their back-to-back character. Thus, the effective interest for the loan equals the effective interest rate 
for the related borrowings. The transaction costs incurred by the EU and then recharged to the 
beneficiary of the loan are directly recognised in the statement of financial performance. 

Financial instruments are derecognised when the rights to receive cashflows from the investments have 
expired or the EU has transferred substantially all risks and rewards of ownership to another party. 

Subsequent measurement 

(i)  Financial assets at fair value through surplus or deficit are subsequently carried at fair value. Gains 

and losses arising from changes in the fair value of the ‘financial instruments at fair value through 
surplus or deficit’ category are included in the statement of financial performance in the period in 
which they arise. 

(ii)  Loans and receivables are carried at amortised cost using the effective interest method. In the case 
of loans granted on borrowed funds, the same effective interest rate is applied to both the loans and 
borrowings since these loans have the characteristics of 'back-to-back operations' and the differences 
between the loan and the borrowing conditions and amounts are not material. The transaction costs 
incurred by the EU and then recharged to the beneficiary of the loan are directly recognised in the 
statement of financial performance. 

(iii) Held to maturity assets are carried at amortised cost using the effective interest method. The EU 

currently holds no held to maturity investments. 

(iv) Available for sale financial assets are subsequently carried at fair value. Gains and losses arising from 
changes in the fair value of available for sale financial assets are recognised in the fair value reserve, 
except for translation differences on monetary assets which are recognised in the statement of 
financial performance. When assets classified as available for sale financial assets are derecognised or 
impaired, the cumulative fair value adjustments previously recognised in the fair value reserve are 
recognised in the statement of financial performance. Interest on available for sale financial assets 
calculated using the effective interest method is recognised in the statement of financial performance. 
Dividends on available for sale equity instruments are recognised when the EU's right to receive 
payment is established. 

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The fair values of quoted investments in active markets are based on current bid prices. If the market for 
a  financial  asset  is  not  active  (and  for  unlisted  securities  and  over-the–counter  derivatives),  the  EU 
establishes  a  fair  value  by  using  valuation  techniques.  These  include  the  use  of  recent  arm’s  length 
transactions,  reference  to  other  instruments  that  are  substantially  the  same,  discounted  cashflow 
analysis, option pricing models and other valuation techniques commonly used by market participants.  

Investments in Venture Capital Funds, classified as available for sale financial assets, which do not have a 
quoted  market  price  in  an  active  market  are  valued  at  the  attributable  net  asset  value,  which  is 
considered as an equivalent of their fair value. 

In  cases  where  the  fair  value  of  investments  in  equity  instruments  that  do  not  have  a  quoted  market 
price  in  an  active  market  cannot  be  reliably  measured,  these  investments  are  valued  at  cost  less 
impairment losses. 

Impairment of financial assets 

The EU assesses at each balance sheet date whether there is objective evidence that a financial asset is 
impaired.  A  financial  asset  is  impaired  and  impairment  losses  are  incurred  if,  and  only  if,  there  is 
objective  evidence  of  impairment  as  a  result  of  one  or  more  events  that  occurred  after  the  initial 
recognition of the asset and that loss event (or events) has an impact on the estimated future cashflows 
of the financial asset that can be reliably estimated. 

(a) 

Assets carried at amortised cost 

If  there  is  objective  evidence  that  an  impairment  loss  on  loans  and  receivables  or  held-to-maturity 
investments  carried  at  amortised  cost  has  been  incurred,  the  amount  of  the  loss  is  measured  as  the 
difference  between  the  asset’s  carrying  amount  and  the  present  value  of  estimated  future  cashflows 
(excluding  future  credit  losses  that  have  not  been  incurred)  discounted  at  the  financial  asset’s  original 
effective  interest  rate.  The  carrying  amount  of  the  asset  is  reduced  and  the  amount  of  the  loss  is 
recognised  in  the  statement  of  financial  performance.  If  a  loan  or  held-to-maturity  investment  has  a 
variable  interest  rate,  the  discount  rate  for  measuring  any  impairment  loss  is  the  current  effective 
interest rate determined under the contract. The calculation of the present value of the estimated future 
cashflows  of  a  collateralised  financial  asset  reflects  the  cashflows  that  may  result  from  foreclosure  less 
costs for obtaining and selling the collateral, whether or not foreclosure is probable. If, in a subsequent 
period,  the  amount  of  the  impairment loss  decreases  and  the  decrease  can  be  related  objectively  to an 
event  occurring  after  the  impairment  was  recognised,  the  previously  recognised  impairment  loss  is 
reversed through the statement of financial performance. 

(b) 

Assets carried at fair value 

In  the  case  of  equity  investments  classified  as  available  for  sale  financial  assets,  a  significant  or 
permanent (prolonged) decline in the fair value of the security below its cost is considered in determining 
whether the securities are impaired. If any such evidence exists for available for sale financial assets, the 
cumulative loss – measured as the difference between the acquisition cost and the current fair value, less 
any  impairment  loss  on  that  financial  asset  previously  recognised  in  the  statement  of  financial 
performance  –  is  removed  from  reserves  and  recognised  in  the  statement  of  financial  performance. 
Impairment  losses  recognised  in  the  statement  of  financial  performance  on  equity  instruments  are  not 
reversed through the statement of financial performance. If, in a subsequent period, the fair value of a 
debt  instrument  classified  as  available  for  sale  financial  asset  increases  and  the  increase  can  be 
objectively related to an event occurring after the impairment loss was recognised, the impairment loss is 
reversed through the statement of financial performance. 

1.5.6. 

Inventories 

Inventories are stated at the lower of cost and net realisable value. Cost is determined using the first-in, 
first-out (FIFO) method. The cost of finished goods and work in progress comprises raw materials, direct 
labour,  other  directly  attributable  costs  and  related  production  overheads  (based  on  normal  operating 
capacity). Net realisable value is the estimated selling price in the ordinary course of business, less the 
costs of completion and selling expenses. When inventories are held for distribution at no charge or for a 
nominal  charge,  they  are  measured  at  the  lower  of  cost  and  current  replacement  cost.  Current 
replacement cost is the cost the EU would incur to acquire the asset on the reporting date. 

18 

 
 
 
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1.5.7. 

Pre-financing amounts 

Pre-financing is a payment intended to provide the beneficiary with a cash advance, i.e. a float. It may be 
split into a number of payments over a period defined in the particular contract, decision, agreement or 
basic legal act. The float or advance is either used for the purpose for which it was provided during the 
period defined in the agreement or it is repaid. If the beneficiary does not incur eligible expenditure, they 
have the obligation to return the pre-financing advance to the EU. The amount of the pre-financing may 
be reduced (wholly or partially) by the acceptance of eligible costs (which are recognised as expenses).  

Pre-financing is, on subsequent balance sheet dates, measured at the amount initially recognised on the 
balance sheet less eligible expenses (including estimated amounts where necessary) incurred during the 
period.  

Interest  on  pre-financing  is  recognised  as  it  is  earned  in  accordance  with  the  provisions  of  the  relevant 
agreement. An estimate of the accrued interest revenue, based on the most reliable information, is made 
at the year-end and included on the balance sheet. 

Other  advances  to  Member  States  which  originate  from  reimbursement  by  the  EU  of  amounts  paid  as 
advances  by  the  Member  States  to  their  beneficiaries  (including  "financial  instruments  under  shared 
management") are recognised as assets and presented under the pre-financing heading. Other advances 
to  Member  States  are  subsequently  measured  at  the  amount  initially  recognised  on  the  balance  sheet 
less  a  best  estimate  of  the  eligible  expenses  incurred  by  final  beneficiaries,  calculated  on  the  basis  of 
reasonable and supportable assumptions. 

The  EU  contributions  to  the  trust  funds  of  the  European  Development  Fund  or  other  unconsolidated 
entities are also classified as pre-financing since their purpose is to give a float to the trust fund to allow 
it to finance specific actions defined under the trust fund's objectives. The EU contributions to trust funds 
are  measured  at  the  initial  amount  of  the  EU  contribution  less  eligible  expenses,  including  estimated 
amounts where necessary, incurred by the trust fund during the reporting period and allocated to the EU 
contribution in accordance with the underlying agreement. 

1.5.8.  Exchange receivables and non-exchange recoverables 

As the EU accounting rules require a separate presentation of exchange and non-exchange transactions, 
for  the  purpose  of  drawing  up  the  accounts,  receivables  are  defined  as  stemming  from  exchange 
transactions  and  recoverables  are  defined  as  stemming  from  non-exchange  transactions,  i.e.  when  the 
EU receives value from another entity without directly giving approximately equal value in exchange (for 
example recoverables from Member States related to own resources). 

Receivables  from  exchange  transactions  meet  the  definition  of  financial  instruments  and  are  thus 
classified  as  loans  and  receivables  and  measured  accordingly  (see  1.5.5  above).  The  financial 
instruments notes disclosures concerning receivables from exchange transactions include accrued income 
and deferred charges from exchange transactions as they are not material. 

Recoverables  from  non-exchange  transactions  are  carried  at  original  amount  (adjusted  for  interest  and 
penalties)  less  write-down  for  impairment.  A  write-down  for  impairment  of  recoverables  from  
non-exchange transactions is established when there is objective evidence that the EU will not be able to 
collect all amounts due according to the original terms of recoverables from non-exchange transactions. 
The amount of the write-down is the difference between the asset’s carrying amount and the recoverable 
amount. The amount of the write-down is recognised in the statement of financial performance. A general 
write-down, based on past experience, is also made for outstanding recovery orders not already subject 
to  a  specific  write-down.  See  note  1.5.14  below  concerning  the  treatment  of  accrued  income  at  
year-end.  Amounts  displayed  and  disclosed  as  recoverables  from  non-exchanges  transactions  are  not 
financial  instruments  as  they  do  not  arise  from  a  contract  that  would  give  rise  to  a  financial  liability  or 
equity  instrument.  However,  in  the  notes  to  the  financial  statements  recoverables  from  non-exchange 
transactions are disclosed together with receivables from exchange transactions where appropriate. 

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1.5.9.  Cash and cash equivalents 

Cash and cash equivalents are financial instruments and include cash at hand, deposits held at call or at 
short  notice  with  banks  and  other  short-term  highly  liquid  investments  with  original  maturities  of  three 
months or less. 

1.5.10.  Pension and other employee benefits 

Pension obligations 

The EU operates defined benefit pension plans. Whilst staff contribute from their salaries one third of the 
expected cost of these benefits, the liability is not funded. The liability recognised in the balance sheet in 
respect  of  defined  benefit  pension  plans  is  the  present  value  of  the  defined  benefit  obligation  at  the 
balance sheet date less the fair value of any plan assets. The defined benefit obligation is calculated by 
actuaries  using  the  projected  unit  credit  method.  The  present  value  of  the  defined  benefit  obligation  is 
determined by discounting the estimated future cash outflows using interest rates of government bonds 
that are denominated in the currency in which the benefits will be paid, and that have terms to maturity 
approximating to the terms of the related pension liability. 

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are 
recognised  immediately  in  the  statement  of  financial  performance.  Past-service  costs  are  recognised 
immediately  in  statement  of  financial  performance,  unless  the  changes  to  the  pension  plan  are 
conditional on the employees remaining in service for a specified period of time (the vesting period). In 
this case, the past-service costs are amortised on a straight-line basis over the vesting period. 

Post-employment sickness benefits 

The  EU  provides  health  benefits  to  its  employees  through  the  reimbursement  of  medical  expenses. 
A separate fund has been created for its day-to-day administration. Both current employees, pensioners, 
widowers and their relatives benefit from the system. The benefits granted to the "inactives" (pensioners, 
orphans, etc.) are classified as "Post-Employment Employee Benefits". Given the nature of these benefits, 
an actuarial calculation is required. The liability in the balance sheet is determined on a similar basis as 
that for the pension obligations (see above). 

1.5.11.  Provisions 

Provisions are recognised when the EU has a present legal or constructive obligation towards third parties 
as a result of past events, it is more likely than not that an outflow of resources will be required to settle 
the  obligation,  and  the  amount  can  be  reliably  estimated.  Provisions  are  not  recognised  for  future 
operating  losses.  The  amount  of  the  provision  is  the  best  estimate  of  the  expenses  expected  to  be 
required  to  settle  the  present  obligation  at  the  reporting  date.  Where  the  provision  involves  a  large 
number  of  items,  the  obligation  is  estimated  by  weighting  all  possible  outcomes  by  their  associated 
probabilities (“expected value” method). 

1.5.12.  Financial liabilities 

Financial  liabilities  are  classified  as  financial  liabilities  at  fair  value  through  surplus  or  deficit  or  as 
financial  liabilities  carried  at  amortised  cost.  Borrowings  are  composed  of  borrowings  from  credit 
institutions  and  debts  evidenced  by  certificates.  They  are  recognised  initially  at  fair  value,  being  their 
issue proceeds (fair value of consideration received) net of transaction costs incurred, then subsequently 
carried  at  amortised  cost  using  the  effective  interest  method;  any  difference  between  proceeds,  net  of 
transaction costs, and the redemption value is recognised in the statement of financial performance over 
the period of the borrowings using the effective interest method.  

Financial liabilities are classified as non-current liabilities, except for maturities less than 12 months after 
the  balance  sheet  date.  In  the  case  of  loans  granted  on  borrowed  funds,  the  effective  interest  method 
may not be  applied to loans and  borrowings, based on materiality considerations. The transaction costs 
incurred  by  the  EU  and  then  recharged  to  the  beneficiary  of  the  loan  are  directly  recognised  in  the 
statement of financial performance. 

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 Annual accounts of the European Commission 2016 

EU trust funds that are considered as part of the Commission's operational activities are accounted for in 
the  Commission  accounts  and  further  consolidated  in  the  EU  annual  accounts.  Therefore,  contributions 
from  other  donors  to  the  EU  trust  funds  fulfil  the  criteria  of  revenues  from  non-exchange  transactions 
under  conditions  and  they  are  presented  as  financial  liabilities  until  the  conditions  attached  to  the 
contributions  transferred  are  met,  i.e.  eligible  costs  are  incurred  by  the  trust  fund.  The  trust  fund  is 
required to finance specific projects and return remaining funds at the time of winding-up. At the balance 
sheet  date  the  outstanding  contribution  liabilities  are  measured  at  contributions  received  less  the 
expenses  incurred  by  the  trust  fund,  including  estimated  amounts  when  necessary.  For  reporting 
purposes  the  net  expenses  are  allocated  to  the  contributions  of  other  donors  in  proportion  to  net 
contributions  paid  as  at  31  December.  This  allocation  of  contributions  is  only  indicative. When  the  trust 
fund is wound up the actual split of remaining resources will be decided by the trust fund board. 

Financial  liabilities  categorised  at  fair value  through  surplus  or deficit include  derivatives  when  their  fair 
value  is  negative.  They  follow  the  same  accounting  treatment  as  financial  assets  at  fair  value  through 
surplus or deficit, see note 1.5.5.  

1.5.13.  Payables 

A  significant  amount  of  the  payables  of  the  EU  are  unpaid  cost  claims  from  beneficiaries  of  grants  or 
other EU funding (non-exchange transactions). They are recorded as payables for the requested amount 
when the cost claim is received. Upon verification and acceptance of the eligible costs, the payables are 
valued at the accepted and eligible amount. 

Payables  arising  from  the  purchase  of  goods  and  services  are  recognised  at  invoice  reception  for  the 
original  amount  and  corresponding  expenses  are  entered  in  the  accounts  when  the  supplies  or  services 
are delivered and accepted by the EU. 

1.5.14.  Accrued and deferred income and charges 

Transactions and events are recognised in the financial statements in the period to which they relate. At 
year-end,  if  an  invoice  is  not  yet  issued  but  the  service  has  been  rendered,  the  supplies  have  been 
delivered by the EU or a contractual agreement exists (e.g. by reference to a treaty), an accrued income 
will  be  recognised  in  the  financial  statements.  In  addition,  at  year-end,  if  an  invoice  is  issued  but  the 
services have not yet been rendered or the goods supplied have not yet been delivered, the revenue will 
be deferred and recognised in the subsequent accounting period. 

Expenses are also accounted for in the period to which they relate. At the end of the accounting period, 
accrued expenses are recognised based on an estimated amount of the transfer obligation of the period. 
The  calculation  of  accrued  expenses  is  done  in  accordance  with  detailed  operational  and  practical 
guidelines  issued  by  the  Commission  which  aim  at  ensuring  that  the  financial  statements  provide  a 
faithful  representation  of  the  economic  and  other  phenomena  they  purport  to  represent.  By  analogy,  if 
payment has been made in advance for services or goods that have not yet been received, the expense 
will be deferred and recognised in the subsequent accounting period. 

1.6.  STATEMENT OF FINANCIAL PERFORMANCE 

1.6.1.  Revenue 

REVENUE FROM NON-EXCHANGE TRANSACTIONS 

The vast majority of the EU's revenue relates to non-exchange transactions: 

GNI based resources and VAT resources 

Revenue is recognised for the period for which the Commission sends out a call for funds to the Member 
States claiming their contribution. They are measured at their “called amount”. As VAT and GNI resources 
are  based  on  estimates  of  the  data  for  the  budgetary  year  concerned,  they  may  be  revised  as  changes 
occur until the final data are issued by the Member States. The effect of a change in estimate is included 
when determining the net surplus or deficit for the period in which the change occurred. 

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 Annual accounts of the European Commission 2016 

Traditional own resources 

Recoverables  from  non-exchange  transactions  and  related  revenues  are  recognised  when  the  relevant 
monthly  "A"  statements  (including  duties  collected  and  amounts  due  that  are  guaranteed  and  not 
contested) are received from the Member States. At the reporting date, revenue collected by the Member 
States for the period but not yet paid to the Commission is estimated and recognised as accrued income. 
The  quarterly  "B"  statements  (including  duties  neither  collected  nor  guaranteed,  as  well  as  guaranteed 
amounts  that  have  been  contested  by  the  debtor)  received  from  the  Member  States  are  recognised  as 
revenue less the collection costs to which they are entitled. In addition, a value reduction is recognised 
for the amount of the estimated recovery gap. 

Fines 

Revenue  from  fines  is  recognised  when  the  EU's  decision  imposing  a  fine  has  been  taken  and  it  is 
officially  notified  to  the  addressee.  If  there  are  doubts  about  the  undertaking's  solvency,  a  value 
reduction  on  the  entitlement  is  recognised.  After  the  decision  to  impose  a  fine,  the  debtors  have  two 
months from the date of notification: 

- 

- 

either to accept the decision, in which case they must pay the fine within the time limit laid down and 
the amount is definitively collected by the EU; 

or not to accept the decision, in which case they lodge an appeal under EU law.  

However, even if appealed, the fine must be paid within the time limit of three months laid down as the 
appeal  does  not  have  suspensory  effect  (Article  278  of  the  EU  Treaty)  or,  under  certain  circumstances 
and  subject  to  the  agreement  of  the  Commission's  Accounting  Officer,  the  debtor  may  present  a  bank 
guarantee for the amount instead. 

If the undertaking appeals against the decision, and has already provisionally paid the fine, the amount is 
disclosed  as  a  contingent  liability.  However,  since  an  appeal  against  an  EU  decision  by  the  addressee 
does  not  have  suspensory  effect,  the  cash  received  is  used  to  clear  the  recoverable.  If  a  guarantee  is 
received instead of payment, the fine remains as a recoverable. If it appears probable that the General 
Court  may  not  rule  in  favour  of  the  EU,  a  provision  is  recognised  to  cover  this  risk.  If  a  guarantee  had 
been  given  instead,  then  the  recoverable  outstanding  is  written-down  as  required.  The  accumulated 
interest  received  by  the  Commission  on  the  bank  accounts  where  received  payments  are  deposited  is 
recognised as revenue, and any contingent liability is increased accordingly. 

Since 2010, all provisionally cashed fines are managed by the Commission in a specifically created fund 
(BUFI) and invested in financial instruments. 

REVENUE FROM EXCHANGE TRANSACTIONS 

Revenue  from  the  sale  of  goods  and  services  is  recognised  when  the  significant  risk  and  rewards  of 
ownership of the goods are transferred to the purchaser. Revenue associated with a transaction involving 
the provision of services is recognised by reference to the stage of completion of the transaction at the 
reporting date. 

Interest income and expense 

Interest income and expense are recognised in the statement of financial performance using the effective 
interest  method.  This  is  a  method  of  calculating  the  amortised  cost  of  a  financial  asset  or  a  financial 
liability  and  of  allocating  the  interest  income  or  interest  expense  over  the  relevant  period.  When 
calculating the effective interest rate, the EU estimates cashflows considering all contractual terms of the 
financial  instrument  (for  example  prepayment  options)  but  does  not  consider  future  credit  losses.  The 
calculation  includes  all  fees  and  points  paid  or  received  between  parties  to  the  contract  that  are  an 
integral part of the effective interest rate, transaction costs and all other premiums or discounts. 

Once  a  financial  asset  or  a  group  of  similar  financial  assets  has  been  written  down  as  a  result  of  an 
impairment loss, interest income is recognised using the rate of interest to discount the future cashflows 
for the purpose of measuring the impairment loss. 

Dividend income 

Dividend income is recognised when the right to receive payment is established. 

22 

 
 
 Annual accounts of the European Commission 2016 

1.6.2.  Expenses 

Expenses from non-exchange transactions account for the majority of the EU's expenses. They relate to 
transfers  to  beneficiaries  and  can  be  of  three  types:  entitlements,  transfers  under  agreement  and 
discretionary grants, contributions and donations. 

Transfers  are  recognised  as  expenses  in  the  period  during  which  the  events  giving  rise  to  the  transfer 
occurred,  as  long  as  the  nature  of  the  transfer  is  allowed  by  regulation  (Financial  Regulation,  Staff 
Regulations, or other regulation) or an agreement has been signed authorising the transfer; any eligibility 
criteria have been met by the beneficiary; and a reasonable estimate of the amount can be made. 

When a request for payment or cost claim is received and meets the recognition criteria, it is recognised 
as  an  expense  for  the  eligible  amount.  At  year-end,  incurred  eligible  expenses  due  to  the  beneficiaries 
but not yet reported are estimated and recorded as accrued expenses. 

Expenses  from  exchange  transactions  arising  from  the  purchase  of  goods  and  services  are  recognised 
when  the  supplies  are  delivered  and  accepted  by  the  EU.  They  are  valued  at  original  invoice  amount. 
Furthermore,  at  the  balance  sheet  date  expenses  related  to  the  service  delivered  during  the  period  for 
which an invoice has not yet been received or accepted are estimated and recognised in the statement of 
financial performance. 

1.7.  CONTINGENT ASSETS AND LIABILITIES 

1.7.1.  Contingent assets 

A  contingent  asset  is  a  possible  asset  that  arises  from  past  events  and  of  which  the  existence  will  be 
confirmed  only  by  the  occurrence  or  non-occurrence  of  one  or  more  uncertain  future  events  not  wholly 
within  the  control  of  the  EU.  A  contingent  asset  is  disclosed  when  an  inflow  of  economic  benefits  or 
service potential is probable. 

1.7.2.  Contingent liabilities 

A contingent liability is a possible obligation that arises from past events and of which the existence will 
be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly 
within  the  control  of  the  EU;  or  a  present  obligation  that  arises  from  past  events  but  is  not  recognised 
because: it is not probable that an outflow of resources embodying economic benefits or service potential 
will be required to settle the obligation or in the rare circumstances where the amount of the obligation 
cannot be measured with sufficient reliability. 

1.8.  CASHFLOW STATEMENT 

Cashflow information is used to provide a basis for assessing the ability of the EU to generate cash and 
cash equivalents, and its needs to utilise those cashflows. 

The  cashflow  statement  is  prepared  using  the indirect  method.  This  means  that  the  economic  result  for 
the  financial  year  is  adjusted  for  the  effects  of  transactions  of  a  non-cash  nature,  any  deferrals  or 
accruals  of  past  or  future  operating  cash  receipts  or  payments,  and  items  of  revenue  or  expense 
associated with investing cashflows. 

Cashflows  arising  from  transactions  in  a  foreign  currency  are  recorded  in  the  EU’s  reporting  currency 
(Euro), by applying to the foreign currency amount the exchange rate between the euro and the foreign 
currency at the date of the cashflow. 

The  cashflow  statement  reports  cashflows  during  the  period  classified  by  operating  and  investing 
activities (the EU does not have financing activities). 

Operating activities are the activities of the EU that are not investing activities. These are the majority of 
the activities performed. Loans granted to beneficiaries (and the related borrowings, when applicable) are 
not  considered  as  investing  (or  financing)  activities  as  they  are  part  of  the  general  objectives  and  thus 

23 

 
 Annual accounts of the European Commission 2016 

daily  operations  of  the  EU.  Operating  activities  also  include  investments  such  as  investments  in  the 
European  Investment  Fund  (EIF),  the  European  Bank  for  Reconstruction  and  Development  (EBRD)  and 
venture  capital  funds.  Indeed,  the  aim  of  these  activities  is  to  contribute  to  the  achievement  of  policy 
objectives. 

Investing  activities  are  the  acquisition  and  disposal  of  intangible  assets  and  property,  plant  and 
equipment  and  of  other  investments  which  are  not  included  in  cash  equivalents.  Investing  activities  do 
not include loans granted to beneficiaries. The objective is to show the real investments made by the EU. 

24 

 
 
 Annual accounts of the European Commission 2016 

2.  NOTES TO THE BALANCE SHEET 

ASSETS

2.1.  INTANGIBLE ASSETS 

Gross carrying amount at 31.12.2015 
Additions 
Disposals 
Transfer between asset categories 
Other changes 
Gross carrying amount at 31.12.2016 
Accumulated amortisation at 31.12.2015 
Amortisation charge for the year 
Amortisation written back 
Disposals 
Transfer between asset categories 
Other changes 
Accumulated amortisation at 31.12.2016 
NET CARRYING AMOUNT AT 31.12.2016 
NET CARRYING AMOUNT AT 31.12.2015 

EUR millions 

 219 
 30 
 (4) 
– 
 7 
 252 
 (91) 
 (26) 
– 
 3 
– 
 (2) 
 (116) 
 135 
 128 

25 

 
 
 
 
 
 
 
2.2.  PROPERTY, PLANT AND EQUIPMENT 

Annual accounts of the European Commission 2016 

Plant and 
equipment 

Furniture and 
vehicles  

Computer 
hardware 

Gross carrying amount at 31.12.2015 
Additions 
Disposals 
Transfer between asset categories 
Other changes 
Gross carrying amount at 31.12.2016 
Accumulated depreciation at 31.12.2015 
Depreciation charge for the year 
Depreciation written back 
Disposals 
Transfer between asset categories 
Other changes 
Accumulated depreciation at 31.12.2016 

Land and 
buildings 

1 395 
 15 
 (2) 
 25 
 3 
1 436 
 (765) 
 (42) 
– 
 2 
– 
 (0) 
 (806) 

Space 
assets 

 725 
 13 
 (2) 
2 864 
 1 
3 602 
 (141) 
 (161) 
– 
 2 
– 
 (0) 
 (300) 

NET CARRYING AMOUNT AT 31.12.2016 
NET CARRYING AMOUNT AT 31.12.2015 

 631 
 630 

3 302 
 584 

Other 

 148 
 11 
 (5) 
 (0) 
 1 
 155 
 (103) 
 (14) 
– 
 5 
 0 
 (1) 
 (112) 

 237 
 26 
 (21) 
 2 
 2 
 248 
 (194) 
 (24) 
– 
 21 
 (2) 
 (0) 
 (201) 

 47 
 43 

 43 
 45 

Finance 
leases  

Assets under 
construction 

EUR millions 
TOTAL 

1 552 
 3 
 (3) 
 (2) 
 0 
1 550 
 (656) 
 (55) 
– 
 3 
 2 
 (0) 
 (705) 

 844 
 896 

3 350 
1 469 
 (0) 
(2 891) 
 (2) 
1 925 
– 
– 
– 
– 
– 
– 
– 

1 925 
3 350 

7 733 
1 550 
 (43) 
– 
 7 
9 247 
(2 141) 
 (314) 
 0 
 42 
– 
 (2) 
(2 415) 

6 832 
5 592 

 253 
 8 
 (7) 
 2 
 1 
 257 
 (226) 
 (14) 
 0 
 7 
 (0) 
 (0) 
 (233) 

 24 
 28 

 73 
 4 
 (3) 
– 
 0 
 74 
 (56) 
 (4) 
– 
 3 
– 
 (0) 
 (58) 

 16 
 16 

26 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Annual accounts of the European Commission 2016 

2.3.  INVESTMENTS ACCOUNTED FOR USING THE EQUITY 

METHOD 

Participations in joint ventures 
Participations in associates 
Total 

2.3.1. 

Participation in associates 

Participation at 31.12.2015 
Contributions 
Dividends received 
Share of net result 
Changes in fair value reserve 
Other equity movements 
Participation at 31.12.2016 

Note 

2.3.1 

31.12.2016 
– 
 528 
 528 

EUR millions 

31.12.2015 
 5 
 491 
 497 

EUR millions 
European 
Investment Fund 
 491 
 41 
 (6) 
 34 
 (0) 
 (32) 
 528 

The  following  carrying  amounts  are  attributable  to  the  Commission  based  on  its  percentage  of 
participation of 28.1 % at 31 December 2016 (2015: 26.5 %): 

Assets 
Liabilities 
Revenue 
Expenses 
Surplus/(deficit) 

31.12.2016 

Total EIF 
2 301 
 (423) 
240 
 (118) 
122 

EU's share 
 647 
 (119) 
 67 
 (33) 
 34 

EUR millions 

31.12.2015 

Total EIF 
2 183 
 (328) 
 192 
 (95) 
 97 

EU's share 
 578 
 (87) 
 51 
 (25) 
 26 

The Commission has paid in 20 % of the EU participation, the balance being uncalled, corresponding at 
31 December 2016 to the following amounts: 

Total share capital 
Paid-in 
Uncalled 

Total EIF capital 
4 382 
 (876) 
3 506 

EUR millions 
EU subscription 
1 232 
 (246) 
 986 

27 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Annual accounts of the European Commission 2016 

2.4.  FINANCIAL ASSETS 

Non-current financial assets 
Available for sale financial assets 
Loans 

Current financial assets 
Available for sale financial assets 
Financial assets at fair value through surplus or deficit 
Loans 

Total 

2.4.1. 

 Available for sale financial assets 

BUFI investments 
European Bank for Reconstruction and Development 

Guarantee Funds for budgetary guarantees: 
Guarantee Fund for external actions 
EFSI Guarantee Fund 

Note 

31.12.2016 

31.12.2015 

EUR millions 

2.4.1 
2.4.3 

2.4.1 
2.4.2 
2.4.3 

7 721 
53 012 
60 733 

1 035 
 0 
2 260 
3 296 
64 029 

5 820 
49 521 
55 341 

2 101 
– 
7 477 
9 579 
64 919 

31.12.2016 
2 013 
 188 
2 201 

2 069 
 948 
3 017 

EUR millions 
31.12.2015 
2 647 
 188 
2 835 

2 002 
- 
2 002 

Financial instruments supported by the EU budget: 
Horizon 2020 
Risk Sharing Finance Facility 
Connecting Europe Facility* 
ETF start up 
Risk Capital Operations 
European Fund for South East Europe 
Other 

 765 
 773 
 425 
 485 
 152 
 118 
 366 
3 084 
7 921 
Total 
5 820 
Non-current 
2 101 
Current 
*  Previous year amounts relate to Project Bond Initiative and Loan Guarantee Instrument for TEN-T projects. These two instruments 

1 213 
 719 
 483 
 476 
 132 
 118 
 398 
3 539 
8 757 
7 721 
1 035 

were merged in 2016 into Connecting Europe Facility. 

2.4.2. 

Financial assets at fair value through surplus or deficit 

Notional 
amount 
receive leg 
 50 

31.12.2016 

Notional 
amount pay 
leg 

 (50) 

Fair value 

31.12.2015 

Notional 
amount 
receive leg 

Notional 
amount pay 
leg 

EUR millions 

Fair value 

 0 

– 

– 

– 

Foreign currency 
forward contract 

28 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Annual accounts of the European Commission 2016 

Fair value hierarchy of financial assets measured at fair value 

Level 1: Quoted prices in active markets 
Level 2: Observable inputs other than quoted prices 
Level 3: Valuation techniques with inputs not based on 
observable market data 
Total 

31.12.2016 
7 224 
 231 
1 302 

EUR millions 
31.12.2015 
6 459 
 152 
1 310 

8 757 

7 921 

Reconciliation of financial assets measured using valuation techniques with inputs not based on 
observable market data (level 3) 

Opening balance at 31.12.2015 
Purchases and sales 
Gains or losses for the period in financial income or finance costs 
Gains or losses in net assets 
Transfers into level 3  
Transfers out of level 3  
Other 
Closing balance at 31.12.2016 

EUR millions 

1 310 
 32 
 (54) 
 13 
– 
– 
– 
1 302 

2.4.3. 

 Loans  

Loans for financial assistance 
Other loans 
Total 
Non-current 
Current 

2.4.3.1.  Loans for financial assistance 

Note 
2.4.3.1 
2.4.3.2 

31.12.2016 
54 944 
 328 
55 272 
53 012 
2 260 

EUR millions 

31.12.2015 
56 645 
 353 
56 998 
49 521 
7 477 

Total at 31.12.2015 
New loans 
Repayments 
Exchange differences 
Changes in carrying amount 
Impairment 
Total at 31.12.2016 
Non-current 
Current 
The change in carrying amount corresponds to the change in accrued interests. 

EFSM 
47 509 
4 750 
(4 750) 
- 
 (53) 
- 
47 456 
46 800 
 656 

BOP 
5 811 
- 
(1 500) 
- 
 (40) 
- 
4 272 
3 050 
1 222 

MFA 
3 024 
 10 
 (70) 
– 
– 
– 
2 964 
2 889 
 75 

Euratom 
 301 
– 
 (49) 
– 
– 
– 
 252 
 199 
 53 

EUR millions 
Total 
56 645 
4 760 
(6 369) 
– 
 (93) 
– 
54 944 
52 938 
2 006 

Nominal  value  of  loans  for  financial  assistance  at  31  December  2016  total  EUR 54 198 million  (2015: 
EUR 55 807 million). 

Loans effective interest rates (expressed as a range of interest rates) 

Macro Financial Assistance (MFA) 
Euratom 
Balance of Payment (BOP) 
European Financial Stability Mechanism (EFSM) 

31.12.2016 
0 % - 4.54 % 
0 % - 5.76 % 
2.37 % - 3.37 % 
0.62 % - 3.75 % 

31.12.2015 
0 % - 4.54 % 
0.08 % - 5.76 % 
2.37 % - 3.62 % 
0.62 % - 3.75 % 

29 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Annual accounts of the European Commission 2016 

2.4.3.2.  Other loans 

Loans with special conditions 
Term deposits over 3 months 
Total 
Non-current 
Current 

31.12.2016 
 93 
 235 
 328 
 74 
 254 

EUR millions 
31.12.2015 
 113 
 240 
 353 
 83 
 270 

Nominal value of other loans at 31 December 2016 total EUR 668 million (2015: EUR 602 million). 

Impairment on other loans 

31.12.2015 

Additions 

Reversals 

Write-off  

Other 

Loans with special 
conditions 
Subrogated loans 

Total 

 13 

 218 

 231 

– 

 114 

 114 

 (6) 

– 

 (6) 

– 

– 

– 

– 

– 

– 

EUR millions 
31.12.2016 

 7 

 332 

 339 

30 

 
 
 
 
 
 
 
 
 
 
 
 
 Annual accounts of the European Commission 2016 

2.5.  PRE-FINANCING 

Non-current pre-financing 
Pre-financing 
Other advances to Member States 
Contribution to Trust Funds 

Current pre-financing 
Pre-financing 
Other advances to Member States 

Total 

2.5.1. 

Pre-financing 

Note 

31.12.2016 

31.12.2015 

EUR millions 

2.5.1 
2.5.2 

2.5.1 
2.5.2 

20 095 
1 651 
 31 
21 777 

21 781 
2 183 
23 964 
45 741 

28 548 
1 332 
 4 
29 884 

11 581 
3 779 
15 360 
45 244 

Shared 
Management 

EAFRD & other 
rural 
development 
instruments 
ERDF & CF 

ESF 

Other 

Direct 
Management 

Implemented by:  

Commission 

EU executive 
agencies 
Trust funds 

Indirect 
Management 

Implemented by: 

Other EU 
agencies & 
bodies 
Third countries 

International 
organisations 
Other entities 

Total 

Non-current 
Current 

Gross amount 

Cleared via 
cut-off 

Net amount at 
31.12.2016 

Gross 
amount 

Cleared via 
cut-off 

EUR millions 
Net amount at 
31.12.2015 

3 955 

– 

3 955 

4 726 

(1 629) 

3 097 

19 858 

6 477 

4 219 

(4 727) 

 (617) 

(2 393) 

15 131 

24 268 

5 860 

1 826 

7 251 

4 359 

(7 416) 

(1 325) 

(2 365) 

16 852 

5 926 

1 994 

12 710 

13 138 

(9 077) 

(8 349) 

3 633 

4 789 

12 741 

11 067 

(9 744) 

(7 769) 

 142 

 (82) 

 60 

 14 

 (5) 

2 997 

3 298 

 9 

2 790 

(2 110) 

 680 

2 250 

(1 649) 

 601 

1 861 

7 230 

(1 135) 

(4 432) 

 726 

2 797 

2 151 

6 640 

(1 229) 

(4 014) 

6 496 

(4 077) 

2 418 

5 327 

(3 521) 

78 876 

(37 000) 

41 876 

80 795 

(40 666) 

20 095 
58 781 

– 
(37 000) 

20 095 
21 781 

28 548 
52 247 

– 
(40 666) 

 922 

2 626 

1 806 

40 129 

28 548 
11 581 

2.5.2.  Other advances to Member States 

Advances to Member States for financial instruments  
under shared management 
Aid Schemes 
Total 
Non-current 
Current 

31 

31.12.2016 
2 534 

EUR millions 
31.12.2015 
3 287 

1 300 
3 834 
1 651 
2 183 

1 824 
5 111 
1 332 
3 779 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Annual accounts of the European Commission 2016 

2.6.  EXCHANGE RECEIVABLES AND NON-EXCHANGE 

RECOVERABLES 

Note 

31.12.2016 

31.12.2015 

EUR millions 

Non-current 
Recoverables from non-exchange transactions 
Receivables from exchange transactions 

Current 
Recoverables from non-exchange transactions 
Receivables from exchange transactions 

2.6.1 
2.6.2 

2.6.1 
2.6.2 

Total 

2.6.1. 

 Recoverables from non-exchange transactions 

 727 
 2 
 729 

10 266 
 341 
10 607 
11 336 

 899 
 0 
 899 

8 844 
 372 
9 215 
10 114 

Non-current 
Member States 
Accrued income and deferred charges 
Other recoverables 

Current 
Member States 
Fines 
Accrued income and deferred charges 
Other recoverables 

Total 

Note 

31.12.2016 

31.12.2015 

EUR millions 

2.6.1.1 
2.6.1.2 

2.6.1.1 

2.6.1.2 

 700 
– 
 27 

 727 

8 122 
1 808 
 153 
 182 

10 266 

10 993 

 856 
– 
 42 

 899 

6 803 
1 601 
 242 
 197 

8 844 

9 742 

2.6.1.1.  Recoverables from Member States 

Recoverables related to own resources: 
Established in the A account 
Established in the separate account 
Own resources to be received 
Impairment 
Other 
Own resource recoverables 
Recoverables in the area of agriculture and rural 
development: 
European Agricultural Guarantee Fund (EAGF) 
European Agricultural Fund for Rural Development (EAFRD) 
Temporary Rural Development Instrument (TRDI) 
Special Accession Programme for Agriculture and Rural 
Development (SAPARD) 
Impairment 
EAGF and rural development recoverables 
Pre-financing recovery expected 
VAT paid and recoverable 
Other recoverables from Member States 
Total 
Non-current 
Current 

32 

31.12.2016 

EUR millions 
31.12.2015 

3 261 
1 437 
1 764 
 (753) 
 36 
5 745 

2 606 
 924 
 30 
 167 

 (999) 
2 729 
 293 
 17 
 39 
8 822 
 700 
8 122 

3 041 
1 283 
– 
 (760) 
 10 
3 573 

3 846 
 750 
 26 
 175 

(1 092) 
3 705 
 313 
 13 
 56 
7 660 
 856 
6 803 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Annual accounts of the European Commission 2016 

2.6.1.2. 

 Accrued income and deferred charges 

Cohesion, Agricultural & Rural Development Funds: 
Financial corrections 
Other accrued income 
Deferred charges relating to non-exchange transactions 
Total 
Non-current 
Current 

2.6.2. 

 Receivables from exchange transactions 

Non-current 
Other receivables 

Current 
Customers 
Impairment on receivables from customers 
Deferred charges relating to exchange transactions 
Others 

Total 

2.7.  INVENTORIES 

Scientific materials 
Other 
Total 

2.8.  CASH AND CASH EQUIVALENTS 

Accounts with Treasuries and Central Banks 
Current accounts 
Imprest accounts 
Transfers (cash in transit) 
Other term deposits 
Bank accounts for budget implementation and  
other term deposits 
Cash belonging to financial instruments 
Cash relating to fines 
Cash relating to trust funds 
Total 

31.12.2016 
 9 

EUR millions 
31.12.2015 
 10 

 70 
 74 
 153 
– 
 153 

 162 
 70 
 242 
– 
 242 

31.12.2016 

EUR millions 
31.12.2015 

 2 
 2 

 189 
 (124) 
 162 
 114 
 341 
 343 

 0 
 0 

 167 
 (105) 
 142 
 168 
 372 
 372 

31.12.2016 
 54 
 21 
 75 

EUR millions 
31.12.2015 
 55 
 20 
 75 

31.12.2016 
24 566 
 127 
 5 
– 
– 
24 698 

1 390 
1 325 
 167 
27 579 

EUR millions 
31.12.2015 
17 119 
 110 
 4 
– 
 28 
17 262 

1 298 
1 908 
 192 
20 660 

33 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Annual accounts of the European Commission 2016 

LIABILITIES

2.9.  PENSION AND OTHER EMPLOYEE BENEFITS 

Net employee benefit scheme liability 

Pension 
Scheme 
of 
European 
Officials 
58 746 
N/A 
58 746 

Other 
retirement 
benefit 
schemes 

Joint 
Sickness 
Insurance 
Scheme 

31.12.2016 
Total 

EUR millions 
31.12.2015 
Total 

1 062 
N/A 
1 062 

7 036 
 (293) 
6 742 

66 844 
 (293) 
66 550 

63 488 
 (280) 
63 208 

Defined Benefit Obligation 
Plan assets 
Net liability 

Actuarial assumptions - employee benefits 

Pension Scheme 
of European 
Officials 

Joint Sickness 
Insurance 
Scheme 

2016 
Nominal discount rate  
Expected inflation rate  
Real discount rate 
Expected rate of salary increases 
Medical cost trend rates 
Retirement age 
2015 
Nominal discount rate  
Expected inflation rate  
Real discount rate 
Expected rate of salary increases 
Medical cost trend rates 
Retirement age 

1.7 % 
1.4 % 
0.3 % 
1.2 % 
N/A 
63/64/66 

2.0 % 
1.4 % 
0.6 % 
1.2 % 
N/A 
63/64/65 

Movement in present value of employee benefits defined benefit obligation 

1.9 % 
1.5 % 
0.4 % 
1.1 % 
3.0 % 
63/64/66 

2.1 % 
1.4 % 
0.7 % 
1.2 % 
3.0 % 
63/64/66 

EUR millions 

Total 

Present value as at 
31.12.2015 
Current Service Cost 
Interest cost 
Net Actuarial (gains) and losses 
Contributions from members 
Benefits paid 
Liability increase/(decrease) due 
to taxes on pensions 
Present value as at 
31.12.2016 

Pension 
Scheme of 
European 
Officials  

54 967 

2 267 
1 264 
2 142 
– 
(1 330) 
 (565) 

Other 
retirement 
benefit 
Schemes 

Joint Sickness 
Insurance 
Scheme 

 859 

 75 
 18 
 72 
– 
 (13) 
 52 

7 662 

63 488 

 283 
 161 
(1 039) 
 24 
 (55) 
– 

2 626 
1 442 
1 174 
 24 
(1 398) 
 (512) 

58 746 

1 062 

7 036 

66 844 

34 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 Annual accounts of the European Commission 2016 

Movement in present value of plan assets of the Joint Sickness Insurance Scheme 

Present value as at 31.12.2015 
Net movement in plan assets 
Present value as at 31.12.2016 

5 year trend 

Present Value of the defined 
benefit obligation 
Fair Value of plan assets 
Employee benefits liability 

EUR millions 

 280 
 14 
 293 

EUR millions 
2016 
66 844 

2012 
41 891 

2013 
46 367 

2014 
58 317 

2015 
63 488 

 (271) 
41 620 

 (264) 
46 103 

 (272) 
58 045 

 (280) 
63 208 

 (293) 
66 550 

Amounts recognised in the Statement of Financial Performance 

2016 
Current service cost 
Interest cost 
Past service cost 
Change in plan assets 
Staff and pension costs 
Actuarial gains and losses 
Total  

Pension 
Scheme of 
European 
Officials 

Other 
retirement 
benefit 
Schemes 

Joint 
Sickness 
Insurance 
Scheme 

EUR millions 
Total 

2 042 
1 138 
– 
– 
3 180 
1 929 
5 108 

 93 
 21 
– 
– 
 114 
 103 
 217 

 283 
 161 
– 
 (45) 
 399 
(1 039) 
 (640) 

2 418 
1 320 
– 
 (45) 
3 693 
 992 
4 685 

Joint Sickness Insurance Scheme sensitivity 

The aggregate of the current service cost and interest cost 
components of net periodic post-employment medical costs 
The  accumulated  post-employment  benefit  obligation  for 
medical costs 

One percentage 
point increase 
 89 

EUR millions 
One percentage 
point decrease 
 (74) 

2 201 

(1 828) 

2.10.  PROVISIONS 

Amount at 
31.12.2015 

Additional 
provisions 

Unused 
amounts 
reversed 

Amounts 
used 

Transfer 
between 
categories 

EUR millions 

Change in 
estimation 

Amount at 
31.12.2016 

- 
- 
 371 
1 078 

 410 
 4 
 2 
1 864 
1 562 

 302 

 40 
 19 
 6 
- 

 536 
 20 
 14 
 636 
 487 

 149 

 (21) 
- 
 (2) 
- 

 (7) 
- 
 10 
 (21) 
 (22) 

0 
- 
 (33) 
 (29) 

 (53) 
- 
 (11) 
 (125) 
 (3) 

 129 
 198 
 (327) 
- 

- 
- 
- 
– 
 (303) 

- 
- 
0 
 64 

 (6) 
- 
- 
 57 
 65 

 1 

 (121) 

 303 

 (8) 

 149 
 217 
 14 
1 113 

 880 
 23 
 16 
2 412 
1 786 

 626 

Legal cases: 
  Agriculture 
  Cohesion 
  Other 
Nuclear site 
dismantling 
Financial 
Fines 
Other 
Total 
Non-current 

Current 

35 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Annual accounts of the European Commission 2016 

2.11.  FINANCIAL LIABILITIES 

Non-current financial liabilities 
Financial liabilities at amortised cost 
Financial liabilities at fair value through  
surplus or deficit 
Financial guarantee liabilities 

Current financial liabilities 
Financial liabilities at amortised cost 
Financial liabilities at fair value through  
surplus or deficit 
Financial guarantee liabilities 

Total 

2.11.1.  Financial liabilities at amortised cost  

Borrowings for financial assistance 
Other financial liabilities 

Total 

Non-current 
Current 

Note 

31.12.2016 

31.12.2015 

EUR millions 

2.11.1 
2.11.2 

2.11.1 
2.11.2 

54 375 
– 

– 
54 375 

2 164 
 1 

– 
2 165 
56 540 

50 897 
– 

– 
50 897 

7 898 
– 

– 
7 898 
58 794 

Note 
2.11.1.1 
2.11.1.2 

31.12.2016 
54 944 
1 596 

56 540 

54 375 
2 164 

EUR millions 

31.12.2015 
56 645 
2 149 

58 794 

50 897 
7 898 

2.11.1.1.  Borrowings for financial assistance 

Total at 31.12.2015 
New borrowings 
Repayments 
Exchange differences 
Changes in carrying amounts 
Total at 31.12.2016 
Non-current 
Current 

EFSM 
47 509 
4 750 
(4 750) 
– 
 (53) 
47 456 
46 800 
 656 

BOP 
5 811 
– 
(1 500) 
– 
 (40) 
4 272 
3 050 
1 222 

MFA 
3 024 
 10 
 (70) 
– 
– 
2 964 
2 889 
 75 

Euratom 
 301 
– 
 (49) 
– 
– 
 252 
 199 
 53 

EUR millions 
Total 
56 645 
4 760 
(6 369) 
– 
 (93) 
54 944 
52 938 
2 006 

Borrowings effective interest rates (expressed as a range of interest rates) 

Macro Financial Assistance (MFA) 
Euratom 
Balance of Payment (BOP) 
European Financial Stability Mechanism (EFSM) 

31.12.2016 
0 % - 4.54 % 
0 % - 5.68 % 
2.37 % - 3.37 % 
0.62 % - 3.75 % 

31.12.2015 
0 % - 4.54 % 
0 % - 5.67 % 
2.37 % - 3.62 % 
0.62 % - 3.75 % 

36 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Annual accounts of the European Commission 2016 

2.11.1.2.  Other financial liabilities 

Non-current 
Finance lease liabilities 
Buildings paid for in instalments 
Other 

Current 
Fines to be reimbursed 
Finance lease liabilities 
Buildings paid for in instalments 
Other 

Total 

Finance lease liabilities 

31.12.2016 

EUR millions 
31.12.2015 

 969 
 279 
 190 
1 438 

 25 
 54 
 20 
 59 
 158 
1 596 

< 1 year 

Future amounts to be paid 
> 5 years 

1 - 5 years 

1 021 
 299 
 139 
1 459 

 625 
 45 
 19 
 1 
 690 
2 149 

EUR millions 

Total 
Liability 
1 014 
 9 
1 023 
 461 
1 484 

Land and buildings 
Other tangible assets 
Total at 31.12.2016 
Interest element 
Total future minimum lease 
payments at 31.12.2016 
Total future minimum lease payments     
at 31.12.2015 

 50 
 4 
 54 
 57 
 111 

 93 

 242 
 5 
 247 
 195 
 442 

 442 

2.11.2.  Financial liabilities at fair value through surplus and deficit  

 722 
– 
 722 
 209 
 931 

1 040 

1 575 

Notional 
amount 
receive leg 
 99 

31.12.2016 

Notional 
amount pay 
leg 
 (101) 

Fair value 

31.12.2015 

Notional 
amount 
receive leg 

Notional 
amount pay 
leg 

EUR millions 

Fair value 

 1 

– 

– 

– 

Foreign currency 
forward contract 

At 31 December 2016 all financial liabilities at fair value through surplus or deficit were  categorised into 
level 2 of fair value hierarchy (valuation based on observable inputs other than quoted prices). 

37 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 Annual accounts of the European Commission 2016 

2.12.  PAYABLES 

Gross 
Amount 

Adjust- 
ments* 

Net Amount 
at 
31.12.2016 

Gross 
Amount 

Adjust- 
ments* 

EUR millions 
Net Amount 
at 
31.12.2015 

 500 

 (34) 

 467 

2 621 

 (230) 

2 391 

10 663 

 (793) 

9 871 

8 360 

 (950) 

7 410 

4 145 

 795 

1 677 

 (95) 

4 050 

3 355 

 (2) 

 (47) 

 (169) 

 748 

1 507 

 436 

1 928 

 (102) 

 (223) 

3 353 

 334 

1 705 

17 781 

(1 138) 

16 643 

16 700 

(1 507) 

15 193 

Cost claims and 
invoices received 
from: 
Member States 
European 
Agricultural Fund for 
Rural Development & 
other rural 
development 
instruments 
European Regional 
Development Fund & 
Cohesion Fund 
European Social 
Fund 
Other 

Private and public 
entities 
Total costs claims 
& invoices 
received 
EAGF 

Own Resources 
Payables 
Sundry Payables 

12 193 

10 441 

 962 

N/A 

N/A 

N/A 

12 193 

10 441 

6 851 

9 506 

 962 

 816 

N/A 

N/A 

N/A 

Total 

41 378 

(1 138) 

40 240 

33 873 

(1 507) 

* Estimated non-eligible amounts and pending other advances to Member States.  

2.13.  ACCRUED CHARGES AND DEFERRED INCOME 

Accrued charges 
Deferred income 
Other 
Total 

The split of accrued charges is as follows: 

European Agricultural Guarantee Fund 
European Agricultural Fund for Rural Development and  
other rural development instruments 
European Regional Development Fund and Cohesion Fund 
European Social Fund 
Other 
Total 

31.12.2016 
66 310 
 690 
 26 
67 027 

31.12.2016 
33 033 
17 024 

7 157 
3 473 
5 623 
66 310 

38 

6 851 

9 506 

 816 

32 367 

EUR millions 
31.12.2015 
66 947 
 980 
 34 
67 962 

EUR millions 
31.12.2015 
38 263 
14 806 

5 026 
2 636 
6 216 
66 947 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 Annual accounts of the European Commission 2016 

NET ASSETS 

2.14.  RESERVES 

Fair value reserve 
Guarantee Fund reserve 
Other reserves 
Total 

2.14.1.   Fair value reserve 

Note 
2.14.1 

31.12.2016 
 311 
2 643 
 77 
3 031 

EUR millions 

31.12.2015 
 287 
2 561 
 68 
2 915 

Movements of fair value reserve during the period 

Available for sale financial assets: 
Included in fair value reserve 
Included in statement of financial performance 
Total 
Relating to participations accounted for  
using the equity method 
Total 

2016 

 25 
 0 
 25 
 (0) 

 24 

EUR millions 
2015 

 79 
 (3) 
 77 
 7 

 85 

2.15.  AMOUNTS TO BE CALLED FROM MEMBER STATES 

Amounts to be called from Member States at 31.12.2015 
Return of 2015 budget surplus to Member States 
Movement in Guarantee Fund reserve 
Other reserve movements 
Economic result of the year 
Total amounts to be called from Member States at 31.12.2016 

EUR millions  

79 879 
1 349 
 82 
 12 
(1 775) 
79 546 

39 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Annual accounts of the European Commission 2016 

3.  NOTES TO THE STATEMENT OF FINANCIAL 

PERFORMANCE 

REVENUE 

REVENUE FROM NON-EXCHANGE TRANSACTIONS:  
OWN RESOURCES 

3.1.  TRADITIONAL OWN RESOURCES 

Customs duties 
Sugar levies 
Total 

2016 
20 301 
 138 
20 439 

EUR millions 
2015 
18 524 
 125 
18 649 

REVENUE FROM NON-EXCHANGE TRANSACTIONS: 
TRANSFERS 

3.2.  RECOVERY OF EXPENSES 

Shared management 
Direct management 
Indirect management 
Total 

2016 
1 876 
 56 
 15 
1 946 

EUR millions 

2015 
1 465 
 76 
 6 
1 547 

3.3.  OTHER REVENUE FROM NON-EXCHANGE 

TRANSACTIONS 

Budgetary adjustments 
Contribution of third countries and accession countries 
Staff taxes and contributions 
Contribution from Member States for external aid 
Transfer of assets 
Adjustment of provisions 
Agricultural levies 
Funding of institutions 
Other 
Total 

2016 
1 956 
 946 
 901 
 732 
 147 
 14 
 5 
(3 324) 
 318 
1 695 

EUR millions 
2015 
 984 
 939 
 815 
 0 
 197 
 70 
 814 
(3 189) 
 592 
1 223 

40 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Annual accounts of the European Commission 2016 

REVENUE FROM EXCHANGE TRANSACTIONS 

3.4.  FINANCIAL INCOME 

Interest income on: 
  Pre-financing 
  Late payments 
  Available for sale financial assets 
  Loans 
  Cash and cash equivalents 
  Impaired financial assets 
  Other  
Total interest income 
Dividend income 
Realised gains on sale of available for sale financial 
assets 
Financial income from financial assets or liabilities  
at fair value through surplus or deficit 
Other financial income 
Total 

2016 

 (0) 
 108 
 17 
1 436 
 5 
 9 
 0 
1 575 
 13 
 29 

 (0) 

 128 
1 745 

EUR millions 
2015 

 8 
 20 
 45 
1 601 
 11 
 7 
 0 
1 693 
 8 
 20 

– 

 66 
1 787 

3.5.  OTHER REVENUE FROM EXCHANGE TRANSACTIONS 

Foreign exchange gains 
Fee and premium revenue related to financial instruments 
Sales of goods 
Property, plant and equipment related revenue 
Other 
Total 

EXPENSES 

3.6.  SHARED MANAGEMENT 

Implemented by Member States 
European Agricultural Guarantee Fund 
European Agricultural Fund for Rural Development & other 
rural development instruments 
European Regional Development Fund and Cohesion Fund 
European Social Fund 
Other 
Total 

3.7. 

 DIRECT MANAGEMENT 

Implemented by the Commission 
Implemented by EU Executive Agencies 
Implemented by Trust funds 
Total 

41 

2016 
 320 
 48 
 14 
 3 
 262 
 647 

EUR millions 
2015 
 949 
 43 
 20 
– 
 251 
1 264 

2016 
44 152 
12 604 

35 045 
9 366 
1 606 
102 772 

2016 
9 287 
6 260 
 97 
15 644 

EUR millions 
2015 
45 032 
16 376 

38 745 
9 849 
2 380 
112 382 

EUR millions 
2015 
10 097 
5 532 
 6 
15 635 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 Annual accounts of the European Commission 2016 

3.8. 

 INDIRECT MANAGEMENT 

2016 
3 064 
 876 
2 382 
2 035 
8 358 

2016 
3 218 
3 693 
6 911 

2016 

1 426 
 56 
 39 
 40 
 184 
 0 
 1 

 111 
1 857 

2016 
 18 
 491 
 713 
 726 
 680 
 425 
 408 
3 462 

2016 
 338 
 43 
 381 

EUR millions 
2015 
1 616 
 905 
2 126 
2 107 
6 754 

EUR millions 
2015 
3 126 
4 411 
7 537 

EUR millions 
2015 

1 588 
 20 
 60 
 27 
 174 
 3 
– 

 60 
1 933 

EUR millions 
2015 
1 137 
 761 
 754 
 637 
 517 
 402 
 447 
4 655 

EUR millions  
2015 
 384 
 60 
 443 

Implemented by other EU agencies & bodies 
Implemented by third countries 
Implemented by international organisations 
Implemented by other entities 
Total 

3.9.  STAFF AND PENSION COSTS 

Staff costs 
Pension costs 
Total 

3.10.  FINANCE COSTS 

Interest expenses: 
        Borrowings 
        Other  
Finance leases 
Impairment losses on available for sale financial assets 
Impairment loss on loans and receivables 
Realised loss on sale of available for sale financial assets 
Loss on financial assets or liabilities at fair value through 
surplus or deficit 
Other finance costs 
Total 

3.11.  OTHER EXPENSES 

Reduction of fines by the Court of Justice 
Foreign exchange losses 
Administrative and IT expenses 
Property, plant and equipment related expenses 
Adjustment of provisions 
Funding and contributions to other EU bodies 
Other 
Total 

Expenses relating to research and development are as follows: 

Research costs 
Non-capitalised development costs 
Total 

42 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.12.  SEGMENT REPORTING BY MULTI ANNUAL FINANCIAL FRAMEWORK HEADING (MFF) 

Annual accounts of the European Commission 2016 

Smart and 
inclusive 
growth 

Sustainable 
growth 

Security 
and 
citizenship 

Global 
Europe 

Administration 

GNI resources 
Traditional own resources 
VAT 
Fines 
Recovery of expenses 
Other 
Non-exchange revenue 
Financial income 
Other 
Exchange revenue 

Total revenue 

Expenses implemented by Member States: 
     EAGF 
     EAFRD & other rural develop. instruments 
     ERDF & CF 
     ESF 
     Other 
Implemented by the Commission, executive 
agencies and trust funds 
Implemented by other EU agencies and bodies 
Implemented by third countries and 
international organisations 
Implemented by other entities 
Staff and pension costs 
Changes in employee benefits actuarial 
assumptions 
Finance costs 
Share of net result of joint ventures and 
associates 
Other expenses 

Total expenses 
Economic result of the year 

– 
– 
– 
– 
 48 
 785 
 834 
 87 
 121 
 208 

1 041 

– 
– 
(35 045) 
(9 366) 
 (466) 
(10 143) 

(2 028) 
 (274) 

(1 411) 
(1 593) 
– 

 (173) 
 2 

(1 468) 

(61 964) 
(60 923) 

– 
– 
– 
– 
1 871 
 171 
2 041 
 0 
 (11) 
 (11) 

2 030 

(44 152) 
(12 604) 
– 
– 
 (754) 
 (544) 

 (110) 
 (5) 

 (16) 
 (345) 
– 

 (47) 
– 

 (83) 

(58 659) 
(56 629) 

– 
– 
– 
– 
 4 
 28 
 32 
 0 
 (7) 
 (7) 

 25 

– 
– 
– 
– 
 (470) 
 (957) 

 (662) 
 (188) 

 (2) 
 (390) 
– 

 (1) 
– 

 (102) 

(2 772) 
(2 747) 

– 
– 
– 
– 
 23 
 105 
 128 
 21 
 (5) 
 16 

 144 

– 
– 
– 
– 
 84 
(3 951) 

 (265) 
(2 792) 

 (606) 
 (575) 
– 

 (20) 
– 

 (70) 

(8 195) 
(8 051) 

* "Not assigned to MFF headings" includes off-budget operations and unallocated programmes with immaterial amounts.    

43 

Not 
assigned 
to MFF 
headings* 
95 578 
20 439 
15 859 
3 858 
 0 
 (262) 
135 473 
1 637 
 328 
1 965 

– 
– 
– 
– 
– 
 869 
 869 
 (0) 
 222 
 222 

1 091 

137 438 

– 
– 
– 
– 
– 
 (50) 

– 
– 

 (0) 
(4 008) 
 (992) 

 (95) 
– 

(1 271) 

(6 416) 
(5 324) 

– 
– 
– 
– 
– 
– 

– 
– 

– 
– 
– 

(1 520) 
– 

 (468) 

(1 988) 
135 450 

EUR millions 

Total 

95 578 
20 439 
15 859 
3 858 
1 946 
1 695 
139 376 
1 746 
 647 
2 393 

141 769 

(44 152) 
(12 604) 
(35 045) 
(9 366) 
(1 606) 
(15 644) 

(3 064) 
(3 259) 

(2 035) 
(6 911) 
 (992) 

(1 857) 
 2 

(3 462) 

(139 994) 
1 775 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Annual accounts of the European Commission 2016 

4. 

CONTINGENT LIABILITIES AND ASSETS 

4.1.  CONTINGENT LIABILITIES 

4.1.1.  Budgetary guarantees 

EIB external lending 
mandate guarantees 
EFSI guarantee 

Total 

Ceiling 

40 645 

16 000 

56 645 

31.12.2016 

Signed 

30 161 

11 245 

41 406 

Disbursed 

21 145 

4 392 

25 537 

Ceiling 

41 764 

16 000 

57 764 

31.12.2015 

Signed 

28 741 

1 252 

29 993 

EUR millions 

Ceiling 

19 450 

 202 

19 652 

4.1.2.  Guarantees relating to financial assistance (borrowing and lending activities) 

EFSM 

BOP 

MFA 

Euratom 

Total 

31.12.2016 

31.12.2015 

  Drawn 

  Undrawn 

Total 

  Drawn 

  Undrawn 

Total 

47 456 

4 272 

2 964 

 252 

54 944 

– 

– 

1 313 

 300 

1 613 

47 456 

47 509 

– 

4 272 

4 277 

 552 

5 811 

3 024 

 301 

56 557 

56 645 

1 323 

 300 

1 623 

47 509 

5 811 

4 347 

 601 

58 268 

EUR millions 

4.1.3.  Guarantees given for EU financial instruments 

Horizon 2020 
Risk Sharing Finance Facility 
Connecting Europe Facility* 
Other 
Total 

31.12.2016 
 921 
 711 
 465 
 3 
2 101 

EUR millions 
31.12.2015 
 459 
 845 
 429 
– 
1 733 

*  Previous year amount relates to Project Bond Initiative and Loan Guarantee Instrument for TEN-T projects. These two instruments 

were merged in 2016 into the Connecting Europe Facility. 

4.1.4. 

Legal cases 

Fines 
Agriculture 
Cohesion 
Other 
Total 

4.2.  CONTINGENT ASSETS 

Guarantees received: 
   Performance guarantees 
   Other guarantees 
Other contingent assets 
Total 

44 

31.12.2016 
1 834 
1 711 
 3 
 506 
4 054 

EUR millions 

31.12.2015 
3 951 
1 377 
 3 
 835 
6 166 

31.12.2016 

EUR millions 
31.12.2015 

 121 
 6 
 33 
160 

173 
3 
46 
222 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Annual accounts of the European Commission 2016 

5.  BUDGETARY AND LEGAL COMMITMENTS 

Outstanding budgetary 
commitments not yet expensed 
Shared management legal 
commitments under the current 
MFF pending implementation 
Significant legal commitments in 
other areas 
Total 

Note 
5.1 

5.2 

5.3 

EUR millions 

31.12.2016 
188 828 

31.12.2015 
174 295 

276 351 

338 755 

18 338 

14 882 

483 517 

527 932 

5.1.  OUTSTANDING BUDGETARY COMMITMENTS NOT YET 

EXPENSED 

Outstanding budgetary commitments not yet expensed 

31.12.2016 
188 828 

EUR millions 
31.12.2015 
174 295 

5.2.  SHARED MANAGEMENT LEGAL COMMITMENTS UNDER 
THE CURRENT MFF PENDING IMPLEMENTATION  

Budget 
available 
under MFF 
(=A-C) 

EUR millions 
Legal 
commitments 
less budget 
commitments 
(=B-C+D) 

159 886 

159 886 

53 573 

2 244 

53 573 

2 244 

215 702 

215 702 

57 284 

57 284 

3 358 

3 358 

60 641 

60 641 

1 637 

1 214 

2 851 

 7 

 0 

 7 

279 195 

276 351 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

Financial 
framework 
2014-2020 
(A) 

Legal 
commitments 
concluded (B) 

Budget 

commitments    

(C ) 

Decommit-   
ments (D) 

Funds 

European Regional 
Development Fund and 
Cohesion Fund 
European Social Fund 
Fund for European Aid to the 
most Deprived 
HEADING 1B: COHESION 
POLICY FUNDS 
European Agricultural Fund for 
Rural Development  
European Maritime and 
Fisheries Fund 
HEADING 2: NATURAL 
RESOURCES 

Asylum and Migration Fund 

Internal Security Fund 

HEADING 3: SECURITY & 
CITIZENSHIP 

262 058 

262 058 

102 172 

91 991 

3 814 

91 991 

3 814 

38 418 

1 570 

357 862 

357 862 

142 160 

99 348 

99 348 

42 064 

5 749 

5 749 

2 392 

105 097 

105 097 

44 455 

3 607 

2 195 

5 802 

1 977 

 981 

2 958 

1 970 

 981 

2 951 

Total 

468 761 

465 917 

189 566 

45 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Annual accounts of the European Commission 2016 

5.3.  SIGNIFICANT LEGAL COMMITMENTS IN OTHER AREAS 

Connecting Europe Facility 
Copernicus 
Galileo  
Fisheries agreements 
Operating lease commitments 
Other contractual commitments 
Total 

5.3.1.  Operating lease commitments 

Note 

5.3.1 

31.12.2016 
13 799 
2 393 
 523 
 247 
 891 
 485 
18 338 

EUR millions 

31.12.2015 
10 051 
2 939 
 124 
 373 
 913 
 483 
14 882 

Future amounts to be paid 

EUR millions 

Buildings 
IT materials and other equipment 
Total 

< 1 year 
 133 
 2 
 135 

1- 5 years 
 407 
 3 
 410 

> 5 years 
 346 
– 
 346 

Total 
 886 
 5 
 891 

46 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Annual accounts of the European Commission 2016 

6. 

FINANCIAL INSTRUMENTS DISCLOSURES 

6.1.  CURRENCY RISKS 

Exposure of the EC to currency risk at year end – net position 

Financial assets 
Available for sale financial assets 
Financial assets at fair value 
through surplus or deficit 
Loans* 
Receivables and recoverables 
Cash and cash equivalents 

Financial liabilities 
Financial liabilities at fair value 
through surplus or deficit 
Payables 

Total 

USD 

GBP 

DKK 

31.12.2016 
SEK 

EUR 

Other 

Total 

EUR millions 

 228 
 (49) 

 4 
– 
 31 
 213 

 58 
– 

– 
 591 
2 392 
3 041 

 14 
– 

– 
 49 
 426 
 490 

 42 
– 

– 
 80 
1 220 
1 341 

8 394 
 50 

 21 
– 

 315 
10 611 
21 423 
40 793 

 10 
 4 
2 087 
2 122 

8 757 
 0 

 328 
11 336 
27 579 
48 001 

 (100) 

– 

– 

– 

 100 

– 

 (1) 

 (0) 
 (101) 
 113 

– 
– 
3 041 

– 
– 
 490 

– 
– 
1 341 

(40 240) 
(40 141) 
 652 

 (0) 
 (0) 
2 122 

(40 240) 
(40 241) 
7 760 

Financial assets 
Available for sale financial assets 
Financial assets at fair value 
through surplus or deficit 
Loans* 
Receivables and recoverables 
Cash and cash equivalents 

Financial liabilities 
Financial liabilities at fair value 
through surplus or deficit 
Payables 

Total 

USD 

GBP 

DKK 

31.12.2015 
SEK 

EUR 

Other 

Total 

EUR millions 

 81 
– 

 5 
– 
 29 
 115 

 76 
– 

– 
 537 
1 784 
2 397 

 11 
– 

– 
 52 
 366 
 429 

 8 
– 

– 
 82 
1 284 
1 375 

7 717 
– 

 330 
9 441 
16 357 
33 845 

 28 
– 

 18 
 1 
 840 
 888 

7 921 
– 

 353 
10 114 
20 660 
39 048 

– 

– 

– 

– 

– 

– 

– 

– 
– 
 115 

– 
– 
2 397 

– 
– 
 429 

– 
– 
1 375 

(32 367) 
(32 367) 
1 478 

– 
– 
 887 

(32 367) 
(32 367) 
6 681 

* Excluding back-to-back loans for financial assistance. 

If  the  EUR  had  strengthened  against  the  currency  concerned  by  10 %,  then  this  would  have  had  the 
following impact: 

2016 
2015 

31.12.2016 
31.12.2015 

Economic result 

USD 
 (3) 
 (3) 

GBP 

 (271) 
 (211) 

DKK 

 (43) 
 (38) 

SEK 

 (118) 
 (124) 

EUR millions 

Net assets 
GBP 

 (5) 
 (7) 

DKK 

 (1) 
 (1) 

EUR millions 

SEK 

 (4) 
 (1) 

USD 
 (7) 
 (7) 

47 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 Annual accounts of the European Commission 2016 

If  the  EUR  had  weakened  against  the  currency  concerned  by  10 %,  then  this  would  have  had  the 
following impact: 

2016 
2015 

31.12.2016 
31.12.2015 

EUR millions 

Economic result 

GBP 

 331 
 258 

DKK 
 53 
 46 

SEK 

 144 
 152 

Net assets 
GBP 
 6 
 8 

DKK 
 2 
 1 

EUR millions 

SEK 
 5 
 1 

USD 
 4 
 4 

USD 
 9 
 9 

6.2.  INTEREST RATE RISK 

The  following  table  illustrates  the  interest  rate  sensitivity  of  available  for  sale  financial  assets  assuming 
possible change in interest rates of +/- 100 basis points (1 %). 

31.12.2016: Available for sale financial assets 

31.12.2015: Available for sale financial assets 

Increase (+) / 
decrease (-) in 
basis points 
+100 
-100 
+100 
-100 

EUR millions 
Effect on 
economic result 
and net assets 
 (238) 
 254 
 (160) 
 172 

6.3.  CREDIT RISK 

Analysis of the age of financial assets that are not impaired 

Total 

55 272 
11 336 
 0 

66 608 
56 998 
10 114 
67 112 

Neither 
past due 
nor 
impaired 

55 271 
10 031 
 0 

65 302 
56 998 
8 510 
65 508 

EUR millions 

Past due but not impaired 

< 1 year 
 1 
 124 
– 

1-5 years 
– 
 909 
– 

> 5 years 
– 
 273 
– 

 125 
– 
 73 
 73 

 909 
– 
1 383 
1 383 

 273 
– 
 148 
 148 

Loans 
Receivables and recoverables 
Financial assets at fair value 
through surplus or deficit 
Total at 31.12.2016 
Loans 
Receivables and recoverables 
Total at 31.12.2015 

48 

 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Annual accounts of the European Commission 2016 

Credit quality of financial assets that are neither past due nor impaired 

Available 
for sale* 

Financial 
assets at 
FVSD** 

31.12.2016 
Loans and 
receivables 

EUR millions 

Cash 

Total 

Counterparties with  
external credit rating 
Prime and high grade 
Upper medium grade 
Lower medium grade 
Non-investment grade 

Counterparties without 
external credit rating 
Group 1 (debtors without 
defaults in the past) 
Group 2 (debtors with defaults 
in the past) 

Total 

5 264 
1 184 
 786 
– 
7 234 

– 

– 

– 
7 234 

– 
– 
– 
– 

 0 

– 

 0 
 0 

3 162 
23 820 
4 526 
27 719 
59 226 

21 180 
5 178 
 486 
 733 
27 576 

5 996 

 79 

 3 

– 

29 606 
30 181 
5 798 
28 452 
94 037 

6 000 

 79 

6 076 
65 302 

 3 
27 579 

6 079 
100 116 

Counterparties with  
external credit rating 
Prime and high grade 
Upper medium grade 
Lower medium grade 
Non-investment grade 

Counterparties without 
external credit rating 
Group 1 (debtors without 
defaults in the past) 
Group 2 (debtors with defaults in 
the past) 

Total 

Available for 
sale* 

Loans and 
receivables 

Cash 

Total 

31.12.2015 

EUR millions 

4 833 
 854 
 909 
 17 
6 612 

– 

– 

– 
6 612 

2 996 
23 800 
4 524 
29 366 
60 687 

4 727 

 95 

4 822 
65 509 

15 269 
4 414 
 253 
 721 
20 657 

 3 

– 

 3 
20 660 

23 099 
29 068 
5 685 
30 103 
87 955 

4 730 

 95 

4 825 
92 780 

*  Available for sale financial assets (excluding equity instruments and Unitary Fund). 
**  Financial assets at fair value through surplus or deficit.  

49 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Annual accounts of the European Commission 2016 

6.4.  LIQUIDITY RISK 

Maturity analysis of financial liabilities by remaining contractual maturity 

Borrowings 
Payables 
Other financial liabilities 
Total at 31.12.2016 
Borrowings 
Payables 
Other financial liabilities 
Total at 31.12.2015 

< 1 year 

2 006 
40 240 
 158 
42 405 
7 207 
32 366 
 690 
40 264 

1-5 years 
17 988 
 0 
 532 
18 520 
9 456 
 (0) 
 398 
9 854 

> 5 years 
34 950 
– 
 906 
35 855 
39 982 
– 
1 060 
41 043 

Financial liabilities at fair value through surplus or deficit  

Derivative receive leg 
Derivative pay leg 
Net liability at 31.12.2016 

< 1 year 

 149 
 (150) 
 (1) 

1-5 years 
– 
– 
– 

> 5 years 
– 
– 
– 

EUR millions 
Total 

54 943 
40 240 
1 596 
96 780 
56 645 
32 366 
2 149 
91 161 

EUR millions 
Total 

 149 
 (150) 
 (1) 

6.5.  CARRYING AMOUNT AND FAIR VALUE OF FINANCIAL 

INSTRUMENTS  

The  following  classes  of  financial  assets  and  liabilities  are  not  measured  at  fair  value:  cash  and  cash 
equivalents, loans, exchange receivables and non-exchange recoverables, borrowings and other financial 
liabilities at amortised cost. The carrying amount of those financial assets and liabilities is considered as 
a reasonable approximation of their fair value. 

50 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Annual accounts of the European Commission 2016 

7.  RELATED PARTIES 

The related parties of the entity are the EU consolidated entities and the key  management personnel of 
these entities. Transactions between these entities take place as part of the normal operations of the EU 
and  as  this  is  the  case,  no  specific  disclosure  requirements  are  necessary  for  these  transactions  in 
accordance with the EU accounting rules. 

Details on key management entitlements are provided in note 7 of the EU consolidated annual accounts. 

51 

 
 Annual accounts of the European Commission 2016 

8. 

EVENTS AFTER THE BALANCE SHEET DATE 

At  the  date  of  signing  of  these  accounts,  except  for  the  matter  outlined  below,  no  material  issues  had 
come to the attention of or were reported to the Accounting Officer of the Commission that would require 
separate  disclosure  under  this  section.  The  accounts  and  related  notes  were  prepared  using  the  most 
recently available information and this is reflected in the information presented. 

On  29 March 2017  the  United  Kingdom  formally  announced  its  intention  to  leave  the  European  Union, 
thus activating Article 50 of the Treaty on European Union. In accordance with this article as well as the 
European  Council  guidelines  on  the  financial  agreement  and  negotiating  directives  provided  by  the 
Council, the EU shall conclude an agreement with the United Kingdom, setting out the arrangements for 
its withdrawal. At the time of the signing of these accounts, the negotiation process has just begun and 
there is no impact on the financial position of the Commission at 31 December 2016. 

52 

 
 
 Annual accounts of the European Commission 2016 

EUROPEAN COMMISSION 
FINANCIAL YEAR 2016 

BUDGETARY IMPLEMENTATION REPORTS  

It should be noted that due to the rounding of figures into millions of euros, some financial data in the 
tables below may appear not to add-up.

53 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Annual accounts of the European Commission 2016 

CONTENTS 

EU BUDGET RESULT........................................................................................ 55 

STATEMENTS OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS ..................... 56 

1. IMPLEMENTATION OF EC BUDGET REVENUE ................................................... 59 

1.1 SUMMARY OF THE IMPLEMENTATION OF BUDGET REVENUE .................................... 59 

2. IMPLEMENTATION OF EC BUDGET EXPENDITURE ............................................ 60 

2.1 MFF: BREAKDOWN & CHANGES IN COMMITMENT & PAYMENT APPROPRIATIONS ........ 60 

2.2 MFF: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS ................................... 61 

2.3 MFF: IMPLEMENTATION OF PAYMENT APPROPRIATIONS ......................................... 62 

2.4 MFF: MOVEMENTS IN COMMITMENTS OUTSTANDING (RAL) .................................... 63 

2.5 MFF: COMMITMENTS OUTSTANDING BY YEAR OF ORIGIN ....................................... 64 

2.6 POLICY AREA: BREAKDOWN AND CHANGES IN COMMITMENT AND PAYMENT 
APPROPRIATIONS ................................................................................................... 65 

2.7 POLICY AREA: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS ...................... 67 

2.8 POLICY AREA: IMPLEMENTATION OF PAYMENT APPROPRIATIONS............................. 69 

2.9 POLICY AREA: MOVEMENTS IN COMMITMENTS OUTSTANDING (RAL) ....................... 71 

2.10 POLICY AREA: COMMITMENTS OUTSTANDING BY YEAR OF ORIGIN ........................ 73 

3. RECONCILIATION OF ECONOMIC RESULT WITH BUDGET RESULT ...................... 75 

54 

 
 
 
Annual accounts of the European Commission 2016 

EU BUDGET RESULT 

Revenue for the financial year 

Payments against current year appropriations 

Payment appropriations carried over to  year N+1 

Cancellation of unused appropriations carried over from year N-1 

Evolution of assigned revenue 

Exchange differences for the year 

Budget result* 

* Of which EFTA result is EUR 0 million in 2016 and EUR (2) million in 2015. 

2016 

144 717 

EUR millions 
2015 

146 624 

(135 180) 

(143 485) 

(1 655) 

(1 299) 

63 

(1 367) 

 (173) 

6 405 

29 

 (704) 

182 

1 347 

55 

 
 
 
Annual accounts of the European Commission 2016 

STATEMENTS  OF  COMPARISON  OF  BUDGET  AND  ACTUAL 
AMOUNTS 

BUDGET REVENUE 

1  Own resources 
3  Surpluses, balances and adjustments 
4  Revenue accruing from persons working with the 

institutions and other union bodies 

5  Revenue accruing from the administrative 

operation of the institutions 

6  Contributions and refunds in connection with 

Union agreements and programmes 
7  Interests on late payments and fines 
8  Borrowing and lending operations 
9  Miscellaneous revenue 
Total 

Initial 
adopted 
budget 

142 269 
0 

Final 
adopted 
budget 

133 677 
1 349 

1 011 

55 

60 

123 
5 
25 
143 548 

123 
5 
25 
136 305 

EUR millions 

Entitlements 
established 

Revenue 

132 192 
1 358 

132 166 
1 358 

1 118 

1 112 

325 

309 

6 170 

5 913 

9 739 
46 
24 
150 972 

3 175 
41 
15 
144 089 

56 

 
 
 
 
 
 
 
 
 
 
 
  
 
  
BUDGET EXPENDITURE: COMMITMENTS BY MULTIANNUAL FINANCIAL 
FRAMEWORK (MFF) HEADING 

Annual accounts of the European Commission 2016 

MFF Heading 

Initial adopted 
budget 

Final adopted 
budget 

Total 
appropriations 
available 

EUR millions 

Payments made 

1  Smart and inclusive growth 

1a: Competitiveness for growth and jobs 

1b: Economic, social and territorial cohesion 

2  Sustainable growth: natural resources 

of which: Market related expenditure and direct payments 

3  Security and citizenship 

4  Global Europe 

5  Administration 

6  Compensations 

8  Negative reserve and deficit carried over from the previous financial year 

9  Special Instruments 

Total 

69 841 

19 010 

50 831 

62 484 

42 220 

4 052 

9 167 

5 164 

0 

0 

525 

69 841 

19 010 

50 831 

62 470 

42 218 

4 292 

9 377 

5 173 

0 

0 

346 

73 039 

21 569 

51 471 

66 952 

46 051 

4 423 

12 240 

5 521 

0 

0 

395 

71 731 

20 332 

51 400 

64 547 

44 285 

4 336 

11 278 

5 379 

0 

0 

61 

151 233 

151 498 

162 569 

157 332 

                                                                            57 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2016 

BUDGET EXPENDITURE: PAYMENTS BY MULTIANNUAL FINANCIAL 
FRAMEWORK (MFF) HEADING 

MFF Heading 

Initial adopted 
budget 

Final adopted 
budget 

Total 
appropriations 
available 

EUR millions 

Payments made 

1  Smart and inclusive growth 

1a: Competitiveness for growth and jobs 

1b: Economic, social and territorial cohesion 

2  Sustainable growth: natural resources 

of which: Market related expenditure and direct payments 

3  Security and citizenship 

4  Global Europe 

5  Administration 

6  Compensations 

8  Negative reserve and deficit carried over from the previous financial year 

9  Special Instruments 

Total 

66 263 

17 418 

48 844 

55 121 

42 212 

3 022 

10 156 

5 164 

0 

0 

389 

59 459 

17 406 

42 053 

55 214 

42 210 

3 069 

9 860 

5 172 

0 

0 

90 

63 618 

20 976 

42 642 

59 464 

46 057 

3 195 

11 163 

5 807 

0 

0 

140 

56 265 

18 461 

37 804 

57 412 

44 084 

3 077 

10 277 

5 350 

0 

0 

61 

140 114 

132 864 

143 386 

132 442 

                                                                            58 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2016 

1. IMPLEMENTATION OF EC BUDGET REVENUE 

1.1 SUMMARY OF THE IMPLEMENTATION OF BUDGET REVENUE 

Title 

Income appropriations 

Entitlements established 

Revenue 

Initial 
adopted 
budget 

Final 
adopted 
budget 

Current 
year 

Carried 
over 

Total 

On 

On 

Total 

entitlements  entitlements 
carried over 

of current 
year 

EUR millions 

Outstanding 

Receipts 
as % of 
budget 

1  Own resources 

142 269 

133 677 

132 164 

28 

132 192 

132 163  

3 

132 166 

99 %  

3 

Surpluses, balances and adjustments 

0 

1 

349 

1 

358 

0 

1 

358 

1 

358 

0 

1 

358 

101 

% 

4 

Revenue accruing from persons working with the institutions 
and other union bodies 

1 

011 

1 

011 

1 

105 

14 

1 

118 

1 

098 

14 

1 

112 

110 

% 

5  Revenue accruing from the administrative operation  of the 

institutions 

6  Contributions and refunds in connection with Union agreements   

and programmes 

55 

60 

55   

313 

13   

325 

301  

8  

309 

562 %  

60 

5 914 

256 

6 170 

5 790  

123 

5 913 

9854 %  

26 

0 

6 

16 

258 

7  Interests on late payments and fines 

123 

123 

2 946 

6 793 

9 739 

1 045 

2 131 

3 175 

2582 % 

6 564 

8 

Borrowing and lending operations 

5 

5 

40 

9 

Miscellaneous revenue 

25 

25 

14 

6 

9 

46 

24 

36 

13 

6 

2 

41 

792 

% 

15 

61 

% 

5 

9 

Total 

143 548 

136 305 

143 854 

7 119 

150 972 

141 804 

2 285 

144 089 

106 % 

6 883 

                                                                            59 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2. IMPLEMENTATION OF EC BUDGET EXPENDITURE 

Annual accounts of the European Commission 2016 

2.1 MFF: BREAKDOWN & CHANGES IN COMMITMENT & PAYMENT APPROPRIATIONS 

Commitment appropriations 

Payment appropriations 

Budget appropriations 

Additional 
appropriations 

MFF Heading 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Carry- 
overs 

Assigned 
revenue 

Total 
approp. 
available 

Budget appropriations 

Additional 
appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final 
adopted 
budget 

Carry- 
overs 

Assigned 
revenue 

1 

2 

3=1+2 

4 

5 

6=3+4+5 

7 

8 

9=7+8 

10 

11 

1.  Smart and inclusive growth 

1a: Competitiveness for growth and jobs 

1b: Economic, social and territorial cohesion 

2.  Sustainable growth: natural resources 

of which: Market related expenditure and 
direct payments 

3.  Security and citizenship 

4.  Global Europe 

5.  Administration 

6.  Compensations 

8.  Negative reserve and deficit carried over from 

the previous financial year 

69 841 

19 010 

50 831 

62 484 

0 

0 

0 

 (15) 

69 841 

153 

19 010 

50 831 

62 470 

0 

153 

410 

3 045 

2 558 

73 039 

21 569 

66 263 

(6 804) 

17 418 

( 13) 

59 459 

17 406 

487 

51 471 

48 844 

(6 791) 

42 053 

4 072 

66 952 

55 121 

93 

55 214 

117 

103 

15 

430 

4 042 

3 467 

575 

42 642 

3 821 

59 464 

42 220 

 (2) 

42 218 

410 

3 424 

46 051 

42 212 

( 3) 

42 210 

424 

3 424 

46 057 

4 052 

9 167 

5 164 

0 

0 

240 

210 

9 

0 

0 

4 292 

0 

131 

4 423 

3 022 

46 

3 069 

9 377 

237 

2 626 

12 240 

10 156 

( 295) 

9 860 

9 

33 

117 

3 195 

1 270 

11 163 

5 173 

0 

0 

0 

0 

0 

0 

348 

5 521 

5 164 

0 

0 

0 

0 

0 

0 

8 

0 

0 

5 172 

284 

350 

5 807 

0 

0 

0 

0 

1 

0 

0 

0 

0 

50 

140 

9.  Special Instruments 

525 

( 179) 

346 

50 

395 

389 

( 299) 

90 

Total 

151 233 

265 

151 498 

800 

10 271 

162 569 

140 114 

(7 250) 

132 864 

874 

9 649 

143 386 

                                                                            60 

EUR millions 

Total 
approp.  
available 

12=9+10+

11 

63 618 

20 976 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2016 

2.2 MFF: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS 

MFF Heading 

Total 
approp. 
available 

from 
final 
adopted 
budget 

1 

Commitments made 

Approp. carried over to 2017 

Appropriations lapsing 

from 
carry- 
overs 

from 
assigned 
revenue 

Total 

% 

assigned 
revenue 

carry- 
overs by 
decision 

Total 

from final 
adopted 
budget 

from 
carry- 
overs 

from 
assigned 
revenue 

Total 

      EUR millions 

2 

3 

4 

5=2+3+4   6=5/1 

7 

8 

9=7+8 

10 

11 

12 

1.  Smart and inclusive growth 

73 039 

69 808 

145 

1 778 

71 731 

98 % 

1 267 

1a: Competitiveness for growth and jobs 

1b: Economic, social and territorial cohesion 

21 569 

18 997 

51 471 

50 811 

2.  Sustainable growth: natural resources 

66 952 

62 013 

0 

145 

396 

1 335 

20 332 

94 % 

1 224 

443 

51 400 

100 % 

43 

2 138 

64 547 

96 % 

1 934 

of which: Market related expenditure and direct 
payments 

46 051 

41 770 

395 

2 120 

44 285 

96 % 

1 304 

3.  Security and citizenship 

4 423 

4 287 

0 

49 

4 336 

98 % 

4.  Global Europe 

5.  Administration 

6.  Compensations 

8.  Negative reserve and deficit carried over 

from  the previous financial year 

m

9.  Special Instruments 

Total 

12 240 

9 364 

237 

1 677 

11 278 

92 % 

5 521 

5 166 

0 

0 

0 

0 

395 

61 

0 

0 

0 

0 

0 

0 

0 

213 

5 379 

97 % 

0 

0 

0 % 

0 % 

0 

0 

0 

433 

433 

0 

10 

1 

0 

0 

1 267 

1 224 

43 

2 368 

1 737 

82 

959 

137 

0 

0 

33 

13 

20 

23 

15 

5 

3 

5 

0 

0 

82 

948 

135 

0 

0 

8 

0 

8 

14 

14 

0 

0 

0 

0 

0 

0 

162 569  150 699 

778 

5 854  157 332  97 % 

4 416 

575 

4 991 

224 

22 

61 

15 % 

50 

130 

180 

155 

                                                                            61 

13=10+ 
11+12 

41 

13 

28 

38 

29 

5 

3 

5 

0 

0 

155 

246 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2016 

2.3 MFF: IMPLEMENTATION OF PAYMENT APPROPRIATIONS 

MFF Heading 

Total 
approp. 
available 

from final 
adopted 
budget 

from 
carry- 
overs 

from 
assigned 
revenue 

Total 

% 

automatic 
carry- 
overs 

carry- 
overs 
by 
decision 

assigned 
revenue 

Total 

from final 
adopted 
budget 

from 
carry- 
overs 

from 
assigned 
revenue 

Total 

Payments made 

Appropriations carried over to 2017 

        Appropriations lapsing 

EUR millions 

1 

2 

3 

4 

5=2+3+4 

6=5/1 

7 

8 

9 

10=7+8+9 

11 

12 

13 

1.  Smart and inclusive growth 

63 618 

55 005 

102 

1 158 

56 265 

88 % 

1a: Competitiveness for growth and jobs 

20 976 

17 257 

42 642 

37 748 

90 

12 

1 114 

18 461 

88 % 

44 

37 804 

89 % 

126 

113 

13 

5 

5 

0 

2 881 

3 012 

4 323 

2 350 

2 468 

31 

531 

544 

4 292 

1b: Economic, social and territorial 
cohesion 

2.  Sustainable growth: natural 

resources 

of which: Market related expenditure and 
direct payments 

59 464 

54 508 

414 

2 490 

57 412 

97 % 

202 

433 

1 330 

1 965 

46 057 

41 558 

408 

2 118 

44 084 

96 % 

197 

433 

1 305 

1 935 

3.  Security and citizenship 

3 195 

3 035 

4.  Global Europe 

11 163 

9 421 

7 

28 

35 

3 077 

96 % 

828 

10 277 

92 % 

11 

35 

5.  Administration 

5 807 

4 916 

262 

172 

5 350 

92 % 

250 

6.  Compensations 

Negative reserve and deficit 
8.  carried over from the previous 

financial year 

0 

0 

0 

0 

9.  Special Instruments 

140 

33 

0 

0 

0 

0 

0 

0 

0 % 

0 

0 % 

28 

61 

44 % 

0 

0 

0 

0 

86 

1 

0 

0 

82 

93 

441 

562 

319 

178 

430 

0 

0 

0 

0 

5 

0 

0 

31 

22 

54 

25 

71 

22 

23 

15 

12 

3 

16 

16 

2 

5 

23 

0 

0 

0 

14=11+ 
12+13 

4 341 

46 

4 295 

87 

37 

25 

324 

27 

0 

0 

25 

3 

3 

0 

0 

0 

0 

0 

0 

0 

0 

0 

Total 

143 386 

126 917 

813 

4 711 

132 442 

92 % 

624 

557 

4 934 

6 115 

4 766 

60 

3  4 830 

                                                                            62 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2016 

2.4 MFF: MOVEMENTS IN COMMITMENTS OUTSTANDING (RAL) 

Commitments outstanding at the end of previous year 

Commitments of the year 

EUR millions 

Total 

MFF Heading 

Commitments   De-commitments 

carried 
forward from 
previous year 

/Revaluations/ 

Cancellations 

Payments  Commitments  Commitments 
outstanding at   made during 

Payments 

year-end 

the year 

Commitments 
outstanding at 
year-end 

Commitments 
outstanding at 
year-end 

Cancellation 
of 
commitments 
which cannot 
be carried 
over 

1.  Smart and inclusive growth 

160 827 

(1 353) 

(48 608) 

110 866 

71 731 

(7 657) 

1a: Competitiveness for growth and jobs 

1b: Economic, social and territorial cohesion 

2.  Sustainable growth: natural resources 

of which: Market related expenditure and direct 
payments 

34 455 

126 372 

28 191 

( 701) 

( 652) 

(11 730) 

(36 877) 

22 024 

88 843 

20 332 

51 400 

(6 731) 

( 927) 

(1 378) 

(12 605) 

14 207 

64 547 

(44 806) 

49 

(3) 

(24) 

22 

44 285 

(44 060) 

3.  Security and citizenship 

3 137 

 (228) 

(1 396) 

1 512 

4 336 

(1 681) 

4.  Global Europe 

5. Administration 

6. Compensations 

8.  Negative reserve and deficit carried over 

from the previous financial year 

9.  Special Instruments 

24 673 

 (699) 

(7 182) 

16 792 

11 278 

(3 095) 

295 

 (24) 

 (270) 

0 

0 

1 

0 

0 

0 

0 

 (0) 

(0) 

1 

0 

0 

0 

5 379 

(5 079) 

0 

0 

0 

0 

61 

 (61) 

(2) 

(2) 

(0) 

(0) 

0 

0 

(1) 

(0) 

0 

0 

0 

64 072 

13 599 

50 473 

19 740 

174 938 

35 622 

139 316 

33 947 

225 

                        247 

2 655                  4 167 

8 182 

24 974 

300                       301 

0                         0 

0 

                       0 

0                         0 

Total 

217 123 

(3 682) 

(70 062) 

143 379 

157 332 

(62 380) 

(3) 

94 949 

238 328 

                                                                            63 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2016 

2.5 MFF: COMMITMENTS OUTSTANDING BY YEAR OF ORIGIN 

MFF Heading 

< 2010 

2010 

2011 

2012 

2013 

2014 

2015 

2016 

Total 

EUR millions 

1  Smart and inclusive growth 
  1a: Competitiveness for growth and jobs 
  1b: Economic, social and territorial cohesion 
2  Sustainable growth: natural resources 
  of which: Market related expenditure and direct  payments 

3  Security and citizenship 

4  Global Europe 

5  Administration 

9  Special Instruments 

Total 

1 741 

563 

1 178 

200 

0 

45 

738 

733 

5 

58 

0 

40 

1 120 

3 461 

23 109 

16 371 

64 326 

64 072 

174 938 

856 

264 

81 

0 

67 

2 223 

4 481 

5 972 

7 194 

13 599 

35 622 

1 237 

18 627 

10 399 

57 132 

50 473 

139 316 

128 

1 234 

1 220 

11 285 

19 740 

33 947 

0 

0 

2 

19 

225 

247 

149 

287 

154 

772 

2 655 

4 167 

899 

539 

843 

1 750 

3 291 

3 784 

5 686 

8 182 

24 974 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

1 

0 

300 

301 

0              0 

2 884 

1 376 

2 111 

5 488 

27 920 

21 530 

82 069 

94 949  238 328 

                                                                            64 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2016 

2.6 POLICY AREA: BREAKDOWN AND CHANGES IN COMMITMENT AND PAYMENT 

APPROPRIATIONS 

Commitment appropriations 

Payment appropriations 

Budget appropriations 

  Additional 
appropriations 

Initial 
adopted 
budget 

1 

Amending  

budgets & 
transfers 

Final adopted 
budget 

Carried 
over 

Assigned 
revenue 

2 

3=1+2 

4 

5 

Total 
approp. 

available 

Budget appropriations                           Additional 

appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final adopted 
budget 

Carried 
over 

Assigned 
revenue 

6=3+4+5 

7 

8 

9=7+8 

10 

11 

Total 
approp. 

available 

12=9+10

+11 

                 EUR millions 

Policy area 

01  Economic and financial affairs 

2 533 

  (7) 

2 525 

02  Internal market, industry, entrepreneurship and 

2 286 

3 

2 289 

SMEs 

03  Competition 

103 

  (1) 

102 

04  Employment, social affairs and inclusion 

12 924 

 27 

12 952 

0  

0 

0 

0 

122 

229 

5  
504 

2 648 

1 097 

432 

1 529 

6  

125 

1 660 

2 518 

1 894 

 (36) 

1 859 

13 

372 

2 243 

107  
13 456 

103 

13 031 

(1)  
(1 818) 

102 

11 213 

9 

14 

5  
576 

116 

11 802 

05  Agriculture and rural development 

61 382 

  (4) 

61 379 

410 

4 

070 

65 858 

54 625 

166 

54 791 

431 

3 

818 

59 039 

06  Mobility and transport 

07  Environment 

4 219 

448 

2 

0 

4 221 

448 

08  Research and innovation 

5 855 

  (7) 

5 848 

09  Communications networks, content and technology 

1 803 

10  Direct research 

397 

53 

0 

1 856 

397 

11  Maritime affairs and fisheries 

1 083 

  (9) 

1 074 

12  Financial stability, financial services and capital 

markets union 

13  Regional and urban policy 

14  Taxation and customs union 

15  Education and culture 

16  Communication 

85 

35 989 

166 

2 889 

204 

0 

40 

0 

0 

0 

17  Health and food safety 

571 

  (14) 

85 

167 

2 890 

204 

557 

36 029 

146 

18  Migration and home affairs 

3 225 

 250 

3 475 

                                                                            65 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

125 

18  

897 

173 

538  

6 

4  

60 

9  

12  
42  

88 

4 346 

2 296 

 (103) 

2 193 

467  

397 

(5)  

392 

5  
4  

123 

2 321 

16  

412 

6 745 

5 403 

 (10) 

5 393 

28 

1 391 

6 811 

2 029 

2 373 

 (32) 

2 341 

935  
1 081  
89  

403 

758 

8
6 

 (17)  
 (145)  
(3)  

385 

613 

83 

36 235 

36 386 

(5 365) 

31 021 

176  

159 

216  
598  

197 

571 

0  

25 

(2)  
 (37)  

159 

3 055 

195 

535 

3 563 

2 323 

61 

2 384 

11 

40 

3 

4 

11 

5 

13 

12 

9 

6 

274 

479  
6  
4  

76 

7  

2 627 

905 

622 

91 

31 108 

171 

631 

3 699 

12  
42  

96 

219 

586 

2 487 

466 

3 356 

3 031 

 
 
 
                 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2016 

Commitment appropriations 

Payment appropriations 

Budget appropriations 

  Additional 
appropriations 

Initial 
adopted 
budget 

1 

Amending  

budgets & 
transfers 

Final adopted 
budget 

Carried 
over 

Assigned 
revenue 

2 

3=1+2 

4 

5 

Total 
approp. 

available 

Budget appropriations 

Additional 
appropriations 

Initial 
adopted 
budget 

Amending 
budgets & 
transfers 

Final adopted 
budget 

Carried 
over 

Assigned 
revenue 

6=3+4+5 

7 

8 

9=7+8 

10 

11 

EUR millions 

Total 
approp. 

available 

12=9+10

+11 

Policy area 

19   Foreign policy instruments 

783 

  (119) 

20   Trade 

21   International cooperation and development 

22   Neighbourhood and enlargement negotiations 

23   Humanitarian aid and civil protection 

107 

3 162 

3 835 

1 202 

1 

1 

146 

258 

663 

108 

3 163 

3 981 

17 

0 

0 

7 

53 

3 

220 

990 

733 

111 

677 

 (50)                 628 

106                1                 106 

3 383 

3 346               21 

3 367 

4 978 

3 566 

 (264) 

3 301 

1 460 

219 

1 253 

2 933 

1 560 

178 

1 739 

3 

2 

18 

12 

6 

7 

52 

3 

203 

369 

532 

683 

112 

3 587 

3 683 

2 277 

0                 92 

24   Fight against fraud 

80 

 (1) 

             79 

25   Commission's policy coordination and legal advice 

206 

4 

26   Commission's administration 

1 017 

 (21) 

210 

996 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0                 79                86 

 (1)                   85 

12 

222 

206               4 

               210 

15 

12 

237 

178 

1 174 

1 016 

 (15) 

1 001 

142 

180 

1 323 

8                 67                72 

 (13)                   59 

1                 20                19 

 (0)                   19 

16                155 

128               0 

128 

0 

1 685 

1 647              37 

1 684 

7 

1 

5 

0 

62               458 

399 

 (3) 

396 

17 

96 

1 506 

1 524              46 

1 570 

10                268 

239 

1                139                82 

 (8) 

 (5) 

0                236 

309 

 (288) 

232 

77 

21 

5 

4 

4 

0 

8                75 

1                 20 

21 

0 

62 

154 

1 685 

475 

141 

1 716 

9 

1 

0 

245 

82 

21 

72 

19 

139 

1 647 

 (13) 

             59 

 (0) 

             19 

0 

37 

140 

1 684 

399 

 (3) 

396 

1 532 

 (122) 

1 410 

259 

138 

 (0) 

0 

475 

  (238) 

259 

138 

236 

151 233 

265 

151 498 

800 

10 271 

162 569 

140 114 

(7 250) 

132 864 

874 

9 649 

143 386 

27   Budget 

28   Audit 

29   Statistics 

30   Pensions and related expenditure 

31   Language services 

32   Energy 

33   Justice and consumers 

34   Climate action 

40   Reserves 

Total 

                                                                            66 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2016 

2.7 POLICY AREA: IMPLEMENTATION OF COMMITMENT APPROPRIATIONS 

Commitments made 

Appropriations carried over to 2017 

          Appropriations lapsing 

EUR millions 

Policy area 

Total 
appropriations 
available 

from 
final 
adopted 
budget 

from 
carry- 
overs 

from 
assigned 
revenue 

Total 

% 

assigned 
revenue 

carry-overs 
by decision 

Total 

from final 
adopted 
budget 

from 
carry-overs 

from 
assigned 
revenue 

1 

2 

3 

4 

5=2+3+4 

6=5/1 

7 

8 

9=7+8 

10 

11 

12 

Total 

13=10+ 
11+12 

01  Economic and financial affairs 

2 648 

2 525 

02  Internal market, industry, entrepreneurship 

2 518 

2 288 

and SMEs 

03  Competition 

               107 

102 

04  Employment, social affairs and inclusion 

13 456 

12 938 

0 

0 

0 

0 

9 

2 534 

96 % 

121 

2 409 

96 % 

3 

105 

98 % 

428 

13 367 

99 % 

113 

109 

2 

76 

0 

0 

0 

0 

113 

109 

2 

76 

05  Agriculture and rural development 

65 858 

60 927 

395 

2 143 

63 466 

96 % 

1 927 

433 

2 360 

06  Mobility and transport 

4 346 

4 218 

07  Environment 

               467 

448 

08  Research and innovation 

6 745 

5 848 

09  Communications networks, content and 

2 029 

1 856 

technology 

10  Direct research 

               935 

397 

11  Maritime affairs and fisheries 

1 081 

1 069 

12  Financial stability, financial services and capital 

                89 

85 

0 

0 

0 

0 

0 

0 

0 

62 

10 

4 281 

99 % 

458 

98 % 

63 

8 

538 

6 386 

95 % 

359 

81 

1 936 

95 % 

92 

114 

510 

55 % 

424 

2 

2 

1 071 

99 % 

87 

97 % 

markets union 

13  Regional and urban policy 

36 235 

35 968 

145 

26 

36 139  100 % 

14  Taxation and customs union 

               176 

166 

15  Education and culture 

3 356 

2 890 

16  Communication 

17  Health and food safety 

                216 

                598 

204 

557 

18  Migration and home affairs 

3 563 

3 473 

0 

0 

0 

0 

0 

4 

171 

97 % 

359 

3 249 

97 % 

107 

7 

17 

32 

211 

97 % 

573 

96 % 

3 505 

98 % 

5 

25 

56 

5 

2 

34 

4 

0 

0 

0 

0 

0 

0 

0 

31 

0 

0 

0 

0 

0 

63 

8 

359 

92 

424 

5 

2 

65 

4 

107 

5 

25 

57 

1 

0 

0 

13 

18 

2 

0 

0 

0 

0 

5 

0 

29 

0 

0 

0 

0 

1 

0 

0 

0 

0 

14 

0 

0 

0 

0 

0 

0 

0 

1 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

1 

0 

0 

13 

32 

2 

0 

0 

0 

0 

5 

0 

30 

0 

0 

0 

0 

1 

                                                                            67 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2016 

Policy area 

Total 

appropriations 
available 

from final 
adopted 
budget 

from 
carry- 
overs 

from 
assigned 
revenue 

Total 

% 

assigned 
revenue 

carry-overs 
by decision 

Total 

from final 
adopted 
budget 

from 
carry-overs 

from 
assigned 
revenue 

Commitments made 

Appropriations carried over to 2017 

Appropriations lapsing 

1 

2 

3 

4 

5=2+3+4 

6=5/1 

7 

8 

9=7+8 

10 

11 

12 

EUR millions 

Total 

13=10+ 
11+12 

19  Foreign policy instruments 

                733 

20  Trade 

                 111 

654 

108 

21  International cooperation and development 

3 383 

3 161 

22  Neighborhood and enlargement negotiations 

4 978 

3 979 

17 

0 

0 

0 

18 

2 

689 

94 % 

109 

99 % 

187 

3 349 

99 % 

925 

4 904 

99 % 

35 

1 

32 

65 

23  Humanitarian aid and civil protection 

2 933 

1 459 

219 

552 

2 231 

76 % 

701 

24  Fight against fraud 

                  79                 79 

25  Commission's policy coordination and legal 

advice 

                 222 

26  Commission's administration 

1 174 

209 

995 

27  Budget 

28  Audit 

29  Statistics 

                  67                 59 

                  20                 18 

155 

139 

30  Pensions and related expenditure 

1 685 

1 684 

31  Language services 

                458 

396 

32  Energy 

1 506 

1 405 

33  Justice and consumers 

                 268 

34  Climate action 

40  Reserves 

                 139 

                 236 

256 

137 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0              79 

100 % 

7 

216 

97 % 

0 

5 

108 

1 104 

94 % 

69 

5               64 

95 % 

1               19 

97 % 

6 

0 

42 

41 

3 

1 

0 

145 

94 % 

1 684  100 % 

437 

95 % 

1 446 

96 % 

259 

97 % 

138  100 % 

0 

0 % 

3 

1 

10 

0 

20 

55 

7 

0 

0 

9 

0 

1 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

44 

1 

33 

65 

 701 

0 

5 

69 

3 

1 

10 

0 

20 

55 

7 

0 

0 

0 

1 

2 

1 

0 

1 

0 

0 

0 

0 

0 

0 

5 

2 

0 

99 

99 

138 

0 

0 

0 

7 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

1 

9 

1 

0 

1 

0 

0 

0 

0 

0 

0 

5 

2 

0 

138 

Total 

162 569 

150 699 

778 

5 854 

157 332 

97 % 

4 416 

575 

4 991 

224 

22 

0 

246 

                                                                            68 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2016 

2.8 POLICY AREA: IMPLEMENTATION OF PAYMENT APPROPRIATIONS 

Payments made 

Appropriations carried over to 2017 

           Appropriations lapsing 

EUR millions 

Policy area 

Total 

approp. 
available 

from final 
adopted 
budget 

from 
carry- 
overs 

from 
assigned 
revenue 

Total 

% 

automatic 
carry- 
overs 

carry- 
overs by 
decision 

assigned 
revenue 

Total 

from final 
adopted 
budget 

from 
carry- 
overs 

from 
assigned 
revenue 

1 

2 

3 

4 

5=2+3+4 

6=5/1 

7 

8 

9 

10=7+8+ 
9 

11 

12 

13 

01  Economic and financial affairs 

02  Internal market, industry, entrepreneurship and 

SMEs 

03  Competition 

1 660 

2 243 

1 512 

1 843 

               116 

94 

04  Employment, social affairs and inclusion 

11 802 

8 819 

5 

11 

8 

10 

11 

59 

3 

44 

1 529 

92 % 

1 913 

85 % 

105 

90 % 

8 873 

75 % 

5 

15 

8 

12 

0 

0 

0 

0 

114 

313 

119 

328 

3 

10 

12 

1 

0 

532 

544 

2 381 

1 

1 

1 

4 

05  Agriculture and rural development 

59 039 

54 127 

414 

2 488 

57 029 

97 % 

203 

433 

1 330 

1 965 

28 

16 

06  Mobility and transport 

2 321 

2 183 

07  Environment 

               412 

379 

08  Research and innovation 

09  Communications networks, content and 

technology 

10  Direct research 

6 811 

2 627 

               905 

11  Maritime affairs and fisheries 

                622 

12  Financial stability, financial services and capital 

                 91 

5 359 

2 326 

339 

585 

80 

markets union 

13  Regional and urban policy 

31 108 

29 072 

14  Taxation and customs union 

                171 

155 

15  Education and culture 

3 699 

3 043 

16  Communication 

17  Health and food safety 

               219 

               586 

185 

526 

18  Migration and home affairs 

2 487 

2 364 

4 

3 

25 

10 

36 

2 

3 

10 

5 

12 

11 

8 

5 

64 

9 

396 

113 

95 

2 

2 

2 251 

97 % 

392 

95 % 

5 780 

85 % 

2 449 

93 % 

469 

52 % 

589 

95 % 

85 

93 % 

40 

29 123 

94 % 

2 

161 

94 % 

299 

3 354 

91 % 

6 

16 

24 

202 

92 % 

550 

94 % 

2 393 

96 % 

4 

3 

29 

15 

46 

2 

3 

10 

5 

12 

10 

8 

7 

0 

0 

0 

0 

0 

0 

0 

31 

0 

0 

0 

0 

0 

                                                                            69 

59 

7 

63 

11 

994 

1 023 

162 

177 

385 

431 

5 

2 

36 

5 

6 

5 

9 

332 

344 

6 

25 

73 

16 

34 

80 

6 

9 

6 

1 

0 

26 

0 

0 

0 

0 

0 

12 

0 

0 

2 

1 

5 

0 

0 

1 

0 

1 

1 

1 

1 

78 

1 906 

Total 

14=11+ 
12+13 

13 

2 

1 

2 385 

44 

7 

9 

8 

2 

5 

27 

1 

1 908 

0 

1 

1 

2 

13 

0 

0 

0 

0 

0 

1 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2016 

Payments made 

Appropriations carried over to 2017 

           Appropriations lapsing 

EUR millions 

Policy area 

Total 
appropriations 
available 

from final 
adopted 
budget 

from 
carry- 
overs 

from 
assigned 
revenue 

Total 

% 

automatic 
carry- 
overs 

carry- 
overs by 
decision 

assigned 
revenue 

Total 

from final 
adopted 
budget 

from 
carry- 
overs 

from 
assigned 
revenue 

Total 

1 

2 

3 

4 

5=2+3+4 

6=5/1 

7 

8 

9 

10=7+8+ 
9 

11 

12 

13 

14=11+ 
12+13 

19  Foreign policy instruments 

20  Trade 

683 

112 

595 

103 

21  International cooperation and development 

3 587 

3 344 

22  Neighborhood and enlargement negotiations 

3 683 

3 007 

23  Humanitarian aid and civil protection 

2 277 

1 637 

24  Fight against fraud 

25  Commission's policy coordination and legal 

advice 

92 

237 

72 

194 

13 

3 

2 

16 

10 

6 

6 

19 

2 

133 

317 

360 

0 

6 

617 

90 % 

107 

96 % 

3 493 

97 % 

3 334 

91 % 

2 002 

88 % 

78 

84 % 

3 

3 

21 

11 

7 

7 

213 

90 % 

15 

26  Commission's administration 

1 323 

879 

135 

83 

1 097 

83 % 

121 

27  Budget 

28  Audit 

29  Statistics 

75 

20 

53 

18 

154                 123 

30  Pensions and related expenditure 

1 685 

1 684 

7 

1 

4 

0 

31  Language services 

32  Energy 

33  Justice and consumers 

34  Climate action 

40  Reserves 

475 

381 

16 

1 716 

1 549 

245 

82 

21 

222 

64 

0 

5 

3 

3 

0 

4 

1 

6 

0 

37 

67 

4 

1 

0 

63 

85 % 

19 

94 % 

134 

87 % 

1 684  100 % 

6 

1 

5 

0 

435 

92 % 

15 

1 621 

94 % 

229 

94 % 

68 

83 % 

0 

0 % 

5 

4 

4 

0 

0 

0 

0 

0 

33 

2 

70 

52 

36 

5 

91 

62 

86 

173 

265 

5 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

6 

12 

21 

97 

218 

5 

1 

15 

0 

25 

71 

5 

1 

0 

11 

1 

20 

0 

39 

76 

9 

4 

0 

29 

0 

1 

284 

9 

1 

0 

1 

0 

0 

0 

0 

0 

15 

6 

9 

21 

1 

0 

2 

2 

1 

2 

2 

8 

0 

0 

1 

0 

1 

1 

1 

1 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

3 

0 

0 

0 

29 

0 

3 

286 

10 

2 

3 

8 

0 

0 

1 

0 

1 

19 

7 

9 

21 

Total 

143 386 

126 917 

813 

4 711 

132 442 

92 % 

624 

557 

4 934 

6 115 

4 766 

60 

3 

4 830 

                                                                            70 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2016 

2.9 POLICY AREA: MOVEMENTS IN COMMITMENTS OUTSTANDING (RAL) 

Commitments outstanding at the end of previous year 

Commitments of the year 

Total 

Policy area 

Commitments 
carried forward 
from previous 
year 

Decommitments 
/Revaluations/ 
Cancellations 

Payments 

Commitments 
Commitments 
outstanding at  made during 

year-end 

the year 

e year 

Payments 

Cancellation of 
commitments 
which cannot 
be carried over 

Commitments 
outstanding at 
year-end 

Commitments 
outstanding at the 
end of the year 

01 

Economic and financial affairs 

02 

Internal market, industry, 
entrepreneurship and SMEs 

03 

Competition 

1 884 

2 179 

  (28) 

(1 127) 

728 

  (26) 

(1 145) 

1 008 

2 534 

2 409 

 (401) 

           0 

 (768) 

 (1) 

9 

(1) 

(8) 

0 

105 

 (97) 

           0 

2 133 

1 640 

8 

2 861 

2 648 

8 

04 

05 

Employment, social affairs and inclusion 

33 275 

  (438) 

(8 516) 

24 321 

13 367 

 (357) 

Agriculture and rural development 

25 424 

 (1 340) 

(12 274) 

11 810 

63 466 

(44 756) 

 (0) 

 (0) 

13 010 

37 331 

18 710 

30 520 

06 

Mobility and transport 

5 883 

  (114) 

(1 528) 

4 241 

4 281 

 (723) 

            0 

3 558 

07 

Environment 

1 118 

(2) 

( 275) 

841 

458 

 (117) 

            0 

341 

7 799 

1 182 

EUR millions 

08 

Research and innovation 

12 813 

  (107) 

(3 844) 

6 386 

(1 937) 

  (0) 

4 449 

13 312 

09 

Communications networks, content and 
technology 

10 

Direct research 

11 

Maritime affairs and fisheries 

12 

Financial stability, financial services and 
capital markets union 

8 863 

1 856 

3 365 

 (20) 

(1 488) 

1 936 

 (961) 

174 

2 201 

12 

 (19) 

 (53) 

(2) 

 (100) 

 (409) 

(7) 

55 

510 

 (369) 

1 740 

1 071 

 (180) 

3 

87 

 (78) 

13 

Regional and urban policy 

92 788 

  (286) 

(28 491) 

64 010 

36 139 

 (631) 

14 

Taxation and customs union 

125 

(6) 

 (73) 

45 

171 

 (88) 

           0 

15 

Education and culture 

2 801 

  (52) 

(1 256) 

1 494 

3 249 

(2 099) 

16 

Communication 

17 

Health and food safety 

56 

503 

(3) 

 (49) 

 (46) 

 (264) 

4 

193 

211 

573 

 (153) 

   (86) 

           0 

 (0) 

 (0) 

 (0) 

 (0) 

 (0) 

 (0) 

 (0) 

975 

141 

891 

9 

2 832 

196 

2 630 

13 

35 508 

99 518 

83 

1 150 

58 

287 

128 

2 644 

62 

480 

18 

Migration and home affairs 

2 596 

 (168) 

(1 096) 

1 332 

3 505 

(1 297) 

           0 

2 207 

3 539 

                                                                            71 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2016 

Commitments outstanding at the end of previous year 

Commitments of the year 

Commitments 
carried forward 
from previous 
year 

De-commitments 
/Revaluations/ 
Cancellations 

Payments 

Commitments 
Commitments 
outstanding at  made during 

year-end 

the year 

Payments 

Cancellation of 
commitments 
which cannot 
be carried over 

Commitments 
outstanding at 
year-end 

EUR millions 

Total 
commitments 

outstanding at the 
end of the year 

905 

20 

 (46) 

 (339) 

(1) 

 (13) 

9 572 

  (278) 

(2 937) 

11 606 

  (306) 

(2 547) 

520 

6 

6 358 

8 753 

689 

109 

3 349 

4 904 

 (94) 

 (557) 

 (787) 

 (278) 

  (0) 

827 

30 

15 

185 

7 

1 

115 

0 

17 

(5) 

(2) 

(2) 

(9) 

(0) 

(0) 

(7) 

0 

(1) 

 (542) 

279 

2 231 

(1 460) 

 (19) 

 (13) 

 (169) 

(7) 

(1) 

 (50) 

0 

 (16) 

9 

0 

8 

0 

0 

57 

0 

0 

             79 

 (59) 

216 

 (200) 

1 104 

 (928) 

              64 

              19 

145 

 (56) 

 (18) 

 (83) 

1 684 

(1 684) 

437 

 (418) 

6 225 

  (309) 

(1 325) 

4 590 

1 446 

 (296) 

224 

168 

(4) 

(1) 

 (91) 

 (43) 

129 

124 

259 

138 

 (138) 

 (25) 

410 

16 

2 792 

4 117 

770 

20 

16 

176 

8 

1 

62 

0 

19 

930 

22 

9 150 

12 870 

1 050 

29 

16 

184 

8 

1 

119 

0 

19 

1 150 

5 740 

121 

113 

250 

237 

0 

(0) 

(0) 

0 

0 

0 

0 

0 

0 

(0) 

0 

0 

0 

0 

0 

Policy area 

19  Foreign policy instruments 

20  Trade 

21  International cooperation and 

development 

22  Neighborhood and enlargement 

negotiations 

23  Humanitarian aid and civil protection 

24  Fight against fraud 

25  Commission's policy coordination and 

legal advice 

26  Commission's administration 

27  Budget 

28  Audit 

29  Statistics 

30  Pensions and related expenditure 

31  Language services 

32  Energy 

33  Justice and consumers 

34  Climate action 

Total 

217 123 

(3 682) 

(70 062) 

143 379 

157 332 

(62 380) 

(3) 

94 949 

238 328 

                                                                            72 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2016 

2.10 POLICY AREA: COMMITMENTS OUTSTANDING BY YEAR OF ORIGIN 

                                                                                                                                                                                                                                                             EUR millions 

Policy area 

< 2010 

2010 

2011 

2012 

2013 

2014 

2015 

2016 

Total 

01  Economic and financial affairs 

02  Internal market, industry, entrepreneurship and SMEs 

03  Competition 

04  Employment, social affairs and inclusion 

05  Agriculture and rural development 

06  Mobility and transport 

07  Environment 

08  Research and innovation 

09  Communications networks, content and technology 

10  Direct research 

11  Maritime affairs and fisheries 

12  Financial stability, financial services and capital markets union 

11 

13 

0 

382 

34 

100 

80 

77 

29 

9 

85 

0 

13  Regional and urban policy 

1 022 

14  Taxation and customs union 

15  Education and culture 

16  Communication 

17  Health and food safety 

18  Migration and home affairs 

0 

83 

0 

14 

45 

0 

11 

0 

6 

0 

64 

58 

0 

29 

0 

117 

244 

10 

346 

2 133 

2 861 

93 

0 

86 

0 

144 

633 

1 640 

2 648 

0 

0 

8 

8 

265 

420 

4 112 

4 118 

15 018 

13 010 

37 331 

0 

2 

868 

985 

9 921 

18 710 

30 520 

249 

508 

571 

1 321 

1 430 

3 558 

7 799 

68 

98 

137 

181 

217 

341 

1 182 

112 

318 

705 

1 686 

2 835 

3 129 

4 449 

13 312 

16 

2 

0 

0 

1 

0 

37 

1 

13 

0 

8 

0 

141 

298 

615 

721 

975 

2 832 

1 

27 

0 

11 

11 

19 

141 

196 

286 

26 

1 302 

891 

2 630 

0 

1 

3 

9 

13 

825 

14 947 

5 750 

41 459 

35 508 

99 518 

0 

1 

11 

32 

83 

128 

26 

66 

128 

220 

436 

535 

1 150 

2 644 

0 

3 

0 

5 

0 

10 

0 

15 

0 

52 

4 

93 

58 

62 

287 

480 

46 

67 

158 

322 

111 

583 

2 207 

3 539 

                                                                            73 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2016 

                                                                                                                                                                                                                                                 EUR millions 

Policy area 

< 2010 

2010 

2011 

2012 

2013 

2014 

2015 

2016 

Total 

19  Foreign policy instruments 

20  Trade 

12 

0 

5 

0 

11 

0 

38 

0 

55 

1 

168 

231 

410 

930 

1 

4 

16 

22 

21  International cooperation and development 

227 

219 

331 

699 

1 237 

1 525 

2 120 

2 792 

9 150 

22  Neighborhood and enlargement negotiations 

414 

290 

473 

993 

1 507 

2 037 

3 039 

4 117 

12 870 

23  Humanitarian aid and civil protection 

22 

25 

24 

23 

22 

28 

135 

770 

1 050 

24  Fight against fraud 

25  Commission's policy coordination and legal advice 

26  Commission's administration 

27  Budget 

28  Audit 

29  Statistics 

30  Pensions and related expenditure 

31  Language services 

32  Energy 

33  Justice and consumers 

34  Climate action 

Total 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

1 

0 

2 

0 

0 

3 

0 

0 

3 

0 

1 

0 

0 

6 

0 

4 

0 

0 

17 

37 

0 

0 

0 

0 

20 

16 

29 

16 

176 

184 

8 

1 

62 

0 

19 

8 

1 

119 

0 

19 

225 

491 

142 

496 

1 273 

1 053 

910 

1 150 

5 740 

0 

0 

0 

0 

4 

0 

6 

0 

13 

1 

36 

54 

70 

69 

121 

113 

250 

237 

2 884 

1 376 

2 111 

5 488 

27 920 

21 530 

82 069 

94 949  238 328 

                                                                            74 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Commission 2016 

3.  RECONCILIATION  OF  ECONOMIC  RESULT  WITH  BUDGET 
RESULT 

ECONOMIC RESULT OF THE YEAR 

Revenue 
Entitlements established in current year but not 
yet collected 
Entitlements established in previous years and 
collected in current year 
Accrued revenue (net) 
Expenses 
Accrued expenses (net) 
Amount from liaison account 
Expenses prior year paid in current year 
Net-effect pre-financing 
Payment appropriations carried over to next year 
Payments made from carry-overs & cancellation of 
unused payment appropriations 
Movement in provisions 
Other 

BUDGET RESULT OF THE YEAR 
(COMMISSION) 

BUDGET RESULT OTHER INSTITUTIONS 

BUDGET RESULT OF THE YEAR (EU) 

2016 
1 775 

(1 963) 

3 356 

 611 

10 626 
3 286 
(7 656) 
 (366) 
(2 500) 
 841 

3 890 
(2 084) 

9 817 

(3 413) 

6 405 

EUR millions 
2015 
(12 862) 

 (313) 

7 936 

 (359) 

9 953 
3 189 
(1 208) 
(4 764) 
(1 658) 
1 365 

4 914 
(1 725) 

4 470 

(3 123) 

1 347 

75